We use Big Red Sky. It doesn't have all the bells and whistles or integrate with Outlook etc, but to upload adverts, manage candidates, and automate all the usual recruitment letter writing etc it is nice and easy and inexpensive. It's an ASP style system hosted on external servers, and we've found reliability and support to be fine.
There are several systems that have more modules hanging off them than this one, but you pay for that in cost and complication. Depends on how much functionality you really need, and your budget.
Most of the vendors are happy to give you free demos in your office or via web conference, so shopping around is pretty easy these days.
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