One thing I seem to have forgotten from my newbie list of questions - I
take it FreeSWITCH can do call-recording (in both directions) right? If
so, how is this stored/implemented (I hope both ends are stored as a
single sound file)? I would like all calls to be recorded as a matter of
policy, so I do need this implemented if I am going to use FreeSWITCH.

Yes, FS can record as long as it's in the media path.

You can save as any format that FS can handle, including .mp3 if mod_shout is loaded - see http://wiki.freeswitch.org/wiki/Misc._Dialplan_Tools_record_session

It saves both channels to one file, but you have the option to record only caller/callee or to swap the channels. There doesn't seem to be a "flatten to mono" option. See the RECORD_* links at the bottom of that page.

-Avi