Windows Media Encoder - http://www.microsoft.com/en-us/download/details.aspx?id=17792
Is pretty good for screen capture and encoding, but doesn't have much power for editing.  I am a pretty big fan of Sony Vegas 9.0 Platinum when it comes to editing and converting, but it is not free (technically).  I have found decent torrents for it, but you know… downloading torrents is bad and stuff.  So.... yeah.  (/sarcasm)