There's no need to guess at what the recording devices of the Stars Wars universe can do - we have a couple of very good examples. Chiefly the recording Leia makes with R2-D2.
We see Leia bent over while touching R2. Since this same pose is also in the recording, it would seem she's controlling the record and stop functions. So R2 has holographic recording capabilies. Alternately, R2 may be tapping the ship's surveilence systems. That's a distinct possibility as the recording (made in haste and presumably not the highest quality) displays Leia in 360 degrees!
If a simple recorded message can display a person in 360 degrees, what can the Star Wars equivalent of a security camera record? Quite a lot, I would guess. Imagine sifting through terabytes of recorded three dimentional data. You could presumably shift the point of view and present whatever angle and portion of a scene you'd like. Our primative media-display devices can only read the collapsed, 2D format of this. This would also help explain some of the visual artifacts seen.
It does not explain things like explosions heard in space however. The explosions heard in space are obviously sound effects overlaid onto the historical documents. We already know that this is done throughout the movies extensively, i.e. the musical soundtrack.
Questions about what can be picked up by the recorders come into play with Luke's claims about spirit visitations. It can be assumed that the technology is NOT picking up ghost voices or images. No one notices Kenobi's voice in Lukes cockpit in the battle of Yavin IV, and no one talks about dialing down the sensor settings so they don't pick up ghosts on the readouts. Even in the Star Wars universe ghosts have to be added with special effects.