No trackmaster doesn't record the video. I have tried running the standard camera app and trackmaster at the same time and it seemed to work OK, but you have to have trackmaster in the background so it is really only useful for data recording, and then you need to synch up the video and data manually. And I haven't tried it in a 'real' scenario yet to see if there are any noticable frame rate issues or anything.
So, if you want to record video + data, alaprecorder is the way to go. I haven't had any problem with the exporting of data. I use a PC program called race render to do the overlays.
Trackmaster is better as a dedicated lap timer app without video recording. It's OSD gives you split times and things like that as you go.