Action! skips frames when recording in medium quality.

[NullChips]

So, I've used Action! for a long time. Have loved it. Recently, I downgraded to Windows 7, with a clean install of Windows. I installed Action and tried to record some gameplay. However, I've run into an issue. Action! seems to skip frames when recording in medium quality. This isn't just through the Action! player or WMP, this is through a fully rendered video from Vegas, so it's not a player issue. The skipping frames is fixable by setting the quality to low, but as you can imagine, this reduces the quality of the recording, so I'm hoping that this is only a temporary fix. I read elsewhere that a high load on the CPU can cause this, but task manager states that only about 60% of my CPU is in use when I'm recording. It's also unusual for me to encounter this when recording in desktop mode, although I haven't yet tried out recording games in desktop mode.

My specs are:
Intel i5-3470S 2.9 gHz Quad-Core
Nvidia 660m 512mb
16GB DDR3 1600mHz RAM
1TB Internal HDD (OS Drive, around 50MB/s speed)
2TB Seagate Backup+ HDD (Recording Drive, around 160MB/s speed)

If you need any more information or for me to upload a video of the issue let me know.

Thanks