To be sure that you have the dropdown, use the shortcut key PrintScreen to add some manual slides inserted, when the dropdown is open. It is much easier to delete superfluous slides later on then to add slides.
Thanks. That's a good work around for now. Although it would be great to still be able to have captivate record when I select a radio button or an item from a drop down menu.
Have you modified AdobeCaptivate.ini?
I have added a HTML5 demo (published from CP7) which shows two runs of visiting drop down menus here https://dl.dropboxusercontent.com/u/1796574/demo1.zip
In the first run, the entire navigation across all of the drop down menus got recorded.
In the second run, however, only the end points of the navigation got recorded.
This is to show that Captivate uses a set of heuristics to decide when to retain and when to throw away the in-between slides. A simple rule of thumb is, if the mouse landing click has a "good correlation" with the intermediate slides w.r.t x,y coordinates and the amount of screen changes that happened during the mouse navigations in-between, then the entire navigation is retained in the recording.
I haven't updated the ini. It turned out that my global settings and project settings weren't set to record actions. Also, even when I turned those on, it still didn't work. I figured it out finally, I'm using two monitors and have to record on the same monitor as captivate. thanks