It is a violation of their service agreement to record them. however, Audials Moviebox 10 will record it. There are others out there that will as well, many video capture software will.
It's been awhile since I looked at hulu-plus but they didn't have anywhere near the number of movies or good-quality shows that netflix had for streaming last time I looked. Hulu-plus is better for new shows that are airing now. Or for the more obscure tv shows that never saw a dvd release.
I have all the cable channels so hulu and hulu-plus don't interest me unless I miss a show... and usually it turns out they don't offer that show I want to watch anyway
My suggestion is hulu will show you what shows are available. I think netflix might too, I don't know.. not checking now because I'm at work. but just look at what you want to watch type in all the shows you can think of you might want to watch and see which has more of them.
If you are into new shows airing now, Hulu-Plus is the way to go.