Capture border, mouse movements and screen area showing incorrectly

I'm using Captivate4 on Win7 Pro 32bit to record a web demonstration on IE8. Setting the capture area only records a portion of the selected area, and portions outside (and including) the red boundary line. Mouse movements and clicks are also off. I've disabled hardware acceleration and tried a few different screen resolutions.
This occurs in every recording mode and in every capture arrangement - application, predefined, or custom size. Full screen recording captures the correct area, but the slides are very large and cursor actions are still off. The border disappears when Hide is checked, but the area captured is still completely different from the area selected.
I've included screenshots of both the capture area selected and the actual area recorded.
If anyone can help, I'd really appreciate it - thanks in advance!
Area selected for recording:
Area captured during recording - cursor out of place, overlap on the left, missing area on right and bottom:

Change your computer screen resolution to match what you set in Captivate, and you will capture everything.
I had to change mine from 1920x1080 (on a 13" laptop) to 1280x720 which is the maximum in Captivate. As soon as I did that, the entire screen was captured as intended.

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