I did play that not too long ago, great part about it was that it made you so nervous and then after a while you felt safe, like nothing was going to happen and then Boom! You were freaking out over a shadow you *thought* you might have seen. >_<
Well, I can say I don't get as "freaked out" as I used to. Eventually the absolute need to accomplish and complete the game takes over and I forget that I should be sitting there feeling nervous about my every move.
I use Fraps, for the moment I am using the mic on my Lifecam. And funny enough, I just use the basic windows sound recorder.