Ok, I think I've sussed it!
I've been pulling my hair out for weeks on this and after posting on here, I decided to try something and I think I may have found the problem.
I work with a laptop as I am a Trainer and therefore quite mobile. When I'm in the office, I dock my laptop and use the Extended Desktop functionality of Windows so I have my laptop screen and a second 19" monitor which i find incredibly useful as screen real estate is always at a premium. And this is where I believe the problem lies.
I performed a simple test and have repeated this test with identical outcomes everytime. Here is what I did. I fired up Captivate and Outlook and opened up a new mail window in Outlook. I then set Captivate to record the new mail window and hit record. I typed some text into the To field and the Subject field and then stopped the recording. I then previewed the results. When the new mail window was on my primary screen, (i.e the laptop) the Text Entry Box recording worked 100% fine. However, if the new mail screen was residing on my secondary screen, i.e. the monitor, the Text Entry Box recording failed!
So it would seem that Captivate 4 has an issue with seeing the text entered on a secondary monitor when Windows is running in Extended Desktop mode. I am absolutely certain this wasn't an issue with Captivate 3 as I created plenty of content without any of these problems and I was using the Extended Desktop back then.
So, if anyone else is having the same issue, and you are running an Extended Desktop, try what I did above.
In the meantime, I am raising this issue with Adobe in the hope they can get this fixed, but at least now I can carry on with my content creation
A further and interesting updat to this issue.
I reported the bug to Adobe and received a response from Manish Anand who asked me to try switching the configuration of my screens. I currently have the primary screen on the right and the secondary screen on the left. In this configuration, I get the problem mentioned above. However, on Manish's suggestion, I swapped the config so that the primary screen was on the left and the secondary on the right. In this configuration, I was able to capture TEB's on the secondary screen with no problem.
As a result of this, Manish has assured me that this issue will be addressed at some point in the future.
I too am having the same problem. I've unloaded and uploaded the program 2 times with the updater!!!! I am working on a vista machine and nothing will work!!! I am goetting error messages - will not import wav or mp3 files. I cannot even get the recorder button to pop up or work for that matter! Pulling your hair out? I've spent countless hours on the phone only to be reverted to this space. I've tried to go through the system via DOS and no such luck! This program about cost an arm and a leg and it will not work. I need a house visit to prove this!!! Come on Adobe you can do better!