Xfire has a pretty good recorder with it and Wegame is good to
Those aren't stand-alone things tho...they're more of a service.
Oh I don't mind watermarks as long as they don't overpower the video 'too' much.
Are they generally at one of the corners or in the middle of the screen?
They're often in the top center of screen, small white letters, but may vary a bit with company.
Edit: remember that http://www.youtube.com/watch?v=szvFN6P9slg like that.
Also, they may have recording timing limits, like 10 minutes per session (you can edit them together).
FRAPS makes huge files/needs editing. Bandicam supposedly is better about that but I've never used it so can't comment.