I want to do an update on this because so many people keep asking me. To capture videos in Second Life, I use Camtasia, but it's not free: Camtasia Studio 8 [Download] Which program do you use or suggest?
music, license free I get from the YouTube library: https://www.youtube.com/audiolibrary/music, which is for me important as it will make your vids available to mobile devices too (licensed music gets adds on the clips
If you have NVidia graphics card and use the GForce experience thing.. There is something called shadowplay that allows you to record your screen. The resolution and fps is amaze. Then just use cam to edit ect.