For anyone who is interested, we just released PoodLL 2 yesterday, and it contains a new Audio/Video recording repository. PoodLL is set of open source plugins for Moodle of particular interest to language teachers.
It uses our Red5 server hosted at Amazon to do the recordings, and as soon as they are completed they are copied over into your Moodle. It is a lightweight recording solution and so it should be pretty simple to get up and running with. And its free!
Just a heads up to anyone who is interested, the PoodLL Audio/Video Recording repository is now available from the plugins section of moodle.org.
You will need to also install and enable the PoodLL filter.