From Webkinz Insider Wiki
Recording and Posting Video Clips from Webkinz World
Recording and posting a video clip from Webkinz World is relatively simple. It only requires a free small software download and a Windows XP or Vista computer.
Recording a video clip in Webkinz World requires CamStudio, which can be easily downloaded here. Scroll all the way down the page until you see "So where can I get it and how much does it cost?" Click "Camstudio20.exe" which is right under Download Links.
Once you have downloaded and installed CamStudio, open the program and select the "Region" icon on the toolbar, and then select "Region" beneath that.
Be sure the "Record to AVI" function is selected. When you are ready to take the clip, (for instance, you want to take a clip of your pet smiling, you need to have the actions bar ready) click the red button (Record) and select the region you wish to record. When you release the mouse, your recording has begun!
When you wish to end recording, right click on the blue CamStudio Icon on the bottom right corner of your screen. A menu will come up. In that menu, click "Stop."
Your clip will end and a save box will come up.
Save your video in your desired location. Once it is saved, your video will play so that you can see how it turned out.
If you wish to add effects and text to your video, upload it to Lunapic and follow the directions. You will need to convert your file to .gif file type because WI does not permit you to upload an .avi file. When you are done on Lunapic, save the .gif file on your computer and upload it to Tinypic using the "URL" method.
You can use your clip as a WI avatar or signature, or you can post it in the WI Forum using the method for a normal image. A video on the WI Forum should only be a few seconds long. It will not contain sound when posted.