Mac OS X Lion is required for all of these options. Dragon NaturallySpeaking is a popular speech recognition dictation tool, but you have to activate the service for this app. It seems to work with any device that works with the built-in speech command, as mentioned. It seems a bit unstable with the Dazzle Video Capture software, however, so I'd avoid trying it for that task (in fact, I have no experience with any other, with the exception of Dragon Naturally Speaking).
You get the option of not capturing any video from the source device (i.e. the option for viewing the video on the computer screen), a full-screen play back view, a windowed view (to make it easier to share, for example), and you can set whether the software prefers an overscan to show the device better (i.e. automatically adjusts for the devices screen dimensions) or corrects for the "overscan" it creates. You can also enable the geotagging capabilities of the device, and ensure the device name is not visible in Finder, so the user doesn't have to know there is a video camera attached.
The capture device appears in the Finder by default, but you can also open it directly in media player. All files are saved in the user's iMovie library, which is accessible outside of Pinnacle Dazzle Video Capture. The output files are neatly organized under the same folder structure, with the option of "Delete After Completion" in one of the sub-folders (you can see that folder arrangement here)
Each time you run one of those commands, you get a pair of output files whose filename matches your output name, with one letter added onto the end. For me, outputname-t was English sentences, and outputname-s was French sentences. (You should also rename all the output files to add.txt, too.) In theory, if the alignment worked, sentence 1 in outputname-s should be a translation of sentence 1 in outputname-t. d2c66b5586