Ditto, same problem here. I don't have access to my logs from this computer but I get stuck on "INIT" and have the same "Fail ICOpen fcc=lags" message in the logs that other people are posting. I'm on Windows 7. My friend who runs Win 8 gets the BSOD if he hits record. I've found that if I start a recording from the menu screen of Arma 2 and leave it, it will continue to record during gameplay. I can stop the recording, but not restart. I only tested it for 3 minutes or so but it worked for that amount of time. That may be a workaround for people that want to record game play until a solution is found.