Yes it records viodes. You have to use a Olympus XD M+ or H memory card to record at the best quality for the length of the card. You can record at 640 480 30 fps up to 18 minutes and 14 seconds on a 2GB XD M+ card. If you are using the included MicroSD to XD adapter you can only record at 640 480 30fps for 10 second clips. If you want to record lower on this adapter you have to lower the fps to 15 or switch to QVGA mode.