Avner
To answer your question a bit wise
1> Is it possible to simultaneously record and play video on the screen? Answer: yes you can.
2> Can I make videos on top of each other (FaceTime style), or should you have side by side?
Ans: PIP ( ) (http://stackoverflow.com/questions/4521674/handling-two-surfaceviews)
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3 > MediaPlayer MediaRecorder API ?
ans: , .