first : the recorder is still there but do not work anymore !
type in /recorder int he chat box during a fight !
second : it wasn't removed, just disabled ever since we got the 4PLAYER bug. why ? because [quote

ost_uid0="TMyApp"]I'm just too lazy to fix the many bugs the 4player mode made the recorder have.[/quote] so there ya got your answer.
third : it was an ASCII txt file , so yeah it was permanent, i think at the time, SENSHUK had a section dedicated to saved games like this, they could be viewed later on by the game engine !
fourth : there is still some ways to record your fights.
GET yourself a copy of SNAG IT. that software can record a what is going on inside an active window.
*** WARNING ***
This will slow down as hell your computer, so make sure you got a big computer with a big hard drive considering a fight of 30 seconds can take up to 50megs at the maximum compression unti, unless you play in DIVX which is the best for compression !
hope this helped ya to understand how it works... the recorder will get back to us one day... it is planned already... but as long as TMyApp list gets updated with bugs and other bugs, the feature will just get delayed just like the rest !