Hi guys...just wanted to let you know I figured this out.
Silly me...I was capturing the sound AFTER it was routed through my ATI AIW capture card...not smart at all. Evidently, there is some kind of copy protection working that only impacts the sound. I rerouted the sound directly to my sound card and all is now working fine.
Wow...think Tom! Lots of wasted effort on recordings.
Anyway, thanks Mark!