An observation: Looks like you can only use the Panning features if your recording size is smaller than the window you're recording. I think I was thinking more of this feature as a zoom tool than what it actually does. If my recording size is smaller than the window I'm recording, then the Panning features are enabled.
I had looked up the Panning feature in the Adobe documentation and it was extremely limited on what it says. I think a lot more needs to be written about this feature so we're not guessing on what it's suppose to do and what it's limitations are. I had to figure this one out on my own since the documentation wasn't sufficient.
Panning options(Automatic panning/Manual panning) are NOT available when:
Manual panning is NOT available when: