This issue occurs when you are trying to record an older application that does not support Windows Vista or Windows 7 scaling. My Screen Recorder will record your older applications if you turn on the XP DPI scaling in Windows. Right click on the desktop, select 'Screen Resolution', then click 'Make text and other items larger or smaller'. Click 'Set Custom Text Size (DPI)' and check the box for 'Use Windows XP DPI Scaling'.

My Screen Recorder has 'Keyboard Shortcuts' that you can use to start and stop screen recording without using your mouse. The default key for starting the recording is F8, and you can use the same key to pause recording. The default key to stop recording is F9. These keys can be customized to be any combination you like. Please see this page on Keyboard Shortcuts