It's not a server play, unfortunately, or I'd love to have you! It's all done over LAN, with her being my roommate and all. I actually tried to set up a server so we could get her little brother playing with us from his house as well, but it won't work. We set everything up correctly, including the portforwarding and whatnots, but it just wouldn't let him in. People can join in just fine through the same server address if they're on my internet, but if they're on a foreign internet it kept saying my server was offline, so we kind of abandoned that whole idea because I couldn't find any help with that online anywhere. :c
As for my recording, it's HD and no lag, though. All of the recording is done from my PC which is a custom built gaming PC from IBuyPower. It's a pretty powerful machine- It can record on Amplified worlds with minor hiccups.