What is the difference between video and grabación? In other words, what types of "videos" does each describe? Which of the two would best describe a video recorded using a home video recorder or digital camera?
A 'grabación' is best used for non-professional video recording. 'Vídeos' is used for any kind of visual media, usually for short formats.
If you refer to a short format like a youtube video or a video taken with the phone you will say 'vídeo'. But we usually say 'vídeo' if the video is in VHS or BETA format. Those video magnetic cases are named 'vídeos'.
Here you have some examples that I might help you...
They are similar, but are used in different ways:
Usually translates to just 'video', though it has other meanings.
It can be translated to recording, and it means:
So they have similar meanings, but for vídeo the most common is the concept of a video, and for grabación it's the act of recording a vídeo.
To me, there's mostly a one to one relation between vídeo in Spanish and video in English, and between grabación and recording.
That said, video can also mean video cassette recorder, or video cassette.