> Ok, I looked over the recursive exmples but noticed they were for C++.... little bit different I assume.

Not really, but the same tutorial was written with C examples:
http://www.cprogramming.com/tutorial/c/lesson16.html

The tutorial teaches two things very well: first, that recursion is a programming technique where the programmer defines the operations of an algorithm in terms of themselves, and second, that base cases control the execution of a recursive algorithm. Base cases are a decision whether to call the function again or not.

So to make a recursive solution, look at the algorithm for base cases:
1. Compare the current character with the search character.
2. If they match, replace the current character with the replacement character.
3. Repeat step one and 2 until you reach the end of the search string.

Now that I've defined recursion and outlined the steps of the algorithm, hopefully you can come up with a solution.