Not sure I can really follow what you're saying, but if this is a problem with the screen capture function, or rather the playback of the results, maybe it's just a graphics driver problem in the program or a conflict between the graphics mode of what you're trying to capture and your program. Go into the program settings/display settings of Movies on DVD 7 and tweak the video mode for the arranger. Experiment with the different modes. You will be experiencing problems e.g. if you run both the Magix program and the source application you're trying to screen-capture from in overlay graphics mode. Maybe you can also force the source you're trying to capture to operate in a different graphics mode and see whether that helps.

The audio recording not working just strikes me as an incorrect program/sound card mixer setting. You need to make sure to configure the program to record from your sound card and your sound card recording mixer to record from the "Stereo mix". Under Windows Vista, make sure to enable the "stereo mix" in your operating system first.

If it comes down to it, maybe you can contact Magix tech support and they can have a bit more detailed look at your issue.

http://support.magix.net

Good luck!