I believe the facility was removed in one of the various Android updates or revision changes (10-11, 11-12, 12-13 etc). I think, to record calls as they happen you need to jailbreak and install an app that way.
I think so, I tend to use a digital standalone dictaphone (and of course let the 'other end' know the call is being recorded) and have the phone on speakerphone.
It's being recorded for 'quality and training purposes' obviously....