Best recovery software? EnCase... Although that is usually offlimits for average users, but you can get it off kazaa and such. It is used by law enforcement agencies in crimes and businesses checking up on their employees for the most part.
If you do find EnCase you will see that Erase defeats it with even 1 pass of random data.
There are other programs you can find, such as R-Studio. Search for it. It's as good as EnCase when it comes to recovering 'deleted' files.
If Eraser says it's overwriting then it is. It's not deceiving you.