It's a program called uTIPu. It's a free program and automatically produces an flv file, so you don't have to do any of the encoding manually if you want to use it with a web flash player. It has several useful features: zooming during recording, etc.

You can download it here: http://www.utipu.com/app/

Unfortunately their free version places a tiny watermark with their URL on the video for the first 20 or so seconds