I know on xfire it has two options. You can record it and then post it, and it will eat your space, or just do it live and no space is used up. It was pretty nice with in game activation to toggle on or off. I've been able to do it for any game I've played.
It's also based on your bandwidth when you want play it live. You can select lower grade to high to cut down on the lag with it.
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