I am getting the same message when I click on a file to use VLC i.e. Message vlc has crashed, then "do you want to send an error message" no facility for sending message.
I have just tried again and have found the recordings made from an mpeg2 source in the owner/video folder. Is there any way of selecting a folder to save the recordings? The hardest thing was finding the location.
I would just like to register my similar experience. I am running Vista Home and VLC 1.3 and no file is created after using the record button. I have checked the preferences and there is nowhere to enter the required folder to accept recordings.