I found where VLC stores my Recorded edits which in my case is MyDocuments although it would be good to have an option as to where they should be.
However the bug I am finding is that the MP4 recorded snips can be viewed successfully with QuickTime Player or Media Player Classic but not by VLC the player that recorded the MP4 files in the first place. With VLC all I can get is the audio and a black screen!
So I can forward any Recorded edits on to friends but as long as I tell them not to use VLC to view them (although VLC created them!)
I don't know if this is just a problem with my configuration or more widespread (WinXP SP3)
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