Can't get WMREcorder 11.2 to work: "cannot find recording directory" error

Hi,
I just installed my WM Recorder and can't get it to work.
I've tried both the ADA and PRO modes with AUTO on.

I've tried playing a variety of streaming media like on BUDTV and YouTube, but it won't start recording no matter what I do.

When I put it in ADA mode it says "cannot find recording directory", but it lets me select it.

When I tell it to run a test for internet connection, it says everything is ok.

I've tried everything... please help!

I'm using version 11.2 on Windows XP