Use msi afterburner that's what I use its fits your criteria
1)100% free
2)Pretty decent quality though I'm sure if it'll resize letters
(http://event.msi.com/vga/afterburner/download.htm)
Start up the program
Go to settings (lower right corner)
Go to "Video capture" tab
Set your video capture key (the button you'll press to start the recording)
Change what frame rate you want (higher = better quality but also = bigger file = longer upload time)
Set to what folder you want it to save to after your done recording
(If you want to set it so it'll record a mic then your gonna have to mess around a bit I've forgotten how I did mine in the first place)
Tip: make sure after your done recording you press your "Video Capture" button again other wise you'll end up with like a 2 hour long footage before you realize it
(http://www.freemake.com/free_video_converter/)
This is the compression/converting software I use if the video file is to large (if your file is like bigger then 1gb then its going to take verrrrrrrrrrry long.
Tip: Read through the installation process of freemake because while the program is good theres a bunch of junk that's gonna be installed if you rush through the installation process.
Good Luck~