If you have a mic set to record but not plugged in, it causes it! The moment I plugged my mic in OR set it to NOT record mic, it WORKED! A bug for sure, but glad I found the fix!
I have been using Action for a while now, and the only thing new I did was upgrade to a GTX 750 Nvidia card. Now when I do screen or selection recording, its in a timelapse. I tried mp4 and avi and no luck. I havent changed 1 setting.