nMacro allows you to record both keyboard and mouse actions and then save them as standalone executables, which you can run to reproduce recorded actions on same system or on other systems. It works by hooking all messages sent by mouse actions and key actions. Then it save it and binds it to an exe so that when the stand alone executable is run it will play the recorded messages and so reproduce the mouse and keyboard actions.
In order to start recording first you need to set where do you want the output to be saved and its name. This is the executable that will result from the recording. You can do this by writing the path in the Save Record As field or by clicking the browse button next to it. Once you've set the output path you can start recording or you can set a password that will be required every time you run the output before playing recorded events. Also here you have an options to disable all keyboard input (except for CTRL+ALT+DEL that will stop play) during the playing of the recorded events from the output.The password and this last option are both optional.
To begin recording all you have to do is press the red Start Recording button after you've set the output path and name. To stop recording just press CTRL+BREAK or click on the applications tray icon.