Are you running on Windows Vista/7? The recording feature does not work properly on those versions of Windows. This has been fixed in Vizard 4.0 though.
Try the following as a workaround.
- Browse to the Vizard bin folder (e.g. C:\Program Files\WorldViz\Vizard30\bin)
- Right-click on winviz.exe and select Properties
- Select the Compatibility tab
- Check the Disable desktop composition option and click OK
Depending on your graphics driver, this should fix the issue. It should also improve the overall rendering performance of Vizard.