I think some signals got crossed with support.
To record a video in Presenter, it will want to record your screen and webcam. I believe that the message also indicates that it can temporarily change the resolution of your monitor to match it's needs, and that may be the simplest solution. Also, keep in mind that on a dual monitor system, it is looking to the primary monitor, so changing the resolution of your second monitor won't have any affect on Presenter.
It should work with your built in camera. Though some cameras won't do HD, so you may be stuck with SD video.
As to Captivate, that is needed if you attempt to do the Software Simulation, but shouldn't be needed for any other function of Presenter.
Thanks for responding. The error message only indicates that the resolution isn't 1024 x 768 and that I have to make sure that it is set at that resolution. It says to change the resolution and try again. Once I get that error message, my screen resolution is often reset to 800 x 600 automatically. I then change it back to 1024 x 768 and try recording, but the same thing happens. I'm really perplexed.
Did the error message come up when you hit REC or when the video recording application opens?
There is an option to change the settings for this tool, it is the gear looking button on the top right of the video recording dialog.
It will open a window where you can change the resolution of the video and screen capture and at the bottom is the check box telling Presenter to make the change to the desired resolution automatically. (The check box is partially obscured here)
Try playing with these settings and see if that helps.
The error message happens when I select the Record video icon in Powerpoint.
When I installed Presenter, I can access the recorder by selecting Start and then selecting Adobe Presenter Video Creator (64 bit) from the Start menu. That's the only place I see the gear where I can change recording preferences. Is this instance of the Video Creator the same one that is used from within Powerpoint?
This is only available in the Adobe Presenter Video Creator (APVC) dialog.
It may be worth checking that your video card drivers are up to date as well, as older drivers have been known to cause issues with APVC in the past.