Hi dbmcaptivate and welcome to our community
Odd, I just tested on my own PC and I'm not seeing the issue
you are reporting. As a result, I've got some questions that may
help us narrow it a bit.
You mention Edit > Preferences... so I'm assuming
Captivate 3 here, as I believe that is the only version where this
explicit path exists.
* Which operating system are you using? XP or Vista? If you
come back with Vista, maybe this is something that only rears its
ugly little head on Vista? (I'm using XP Pro)
* Are you seeing this when selecting a single recording mode?
Or are you recording in multiple recording mode?
Cheers... Rick