I had a similar problem. Try creating a new folder called Action! and put in it the following sub-files, Video, Audio, Images, and Benchmarks. Then make the new Action! folder the destination of your recordings. When you record it should add a fifth sub-file, Videos, where all the recordings will be...

Ok. I fixed it. There were 2 steps. The first was getting Windows Aero working. The second was creating a new Action! folder and within that creating a folder for each of Video, Audio, Images, and Benchmarks and setting the new Action! as the place to send the recordings.

I just bought Action! after my trial period ran out. There was no problem during the trial period, but for some reason I now seem to not have an output folder and can't change it to another folder either. As a result even though I get the red light that signals it is recording I get no videos. How d...