I'm looking for a high quality on screen recording program to record games. It must work with Sony Vegas Pro 12. Looking for a program like SnagIt 11, only problem is SnagIt 11 doesn't work with Sony.

Not sure if this program is compatible with Sony, but it's free so it's worth a shot. Give it a look.

CamStudio - Free Screen Recording Software

My daughter uses Dxtory for recording Minecraft sessions: ExKode | Dxtory - Features

Not sure what you mean by having the program work with Sony Vegas. The screen capture creates the movie file then you edit it in Vegas, no?

I am using Microsoft Expression Encoder 4 Screen capture. Fast and easy to use.

One of the screen recorders that work with Sony Vegas is FRAPS (FRAPS game capture video recorder fps viewer). It is easy to use and it captures the entire screen. You can later edit and remove the parts that you do not want. The only issue with FRAPS is that recorded files take a lot of hard disk space. There is another tool called BSR discussed here Screen recorder gaming webcam with high frame quality | Techyv.com