Captivate 4 Recording Modes changing automatically? Frame rate issues/black lines in preview and publish?

Hi, we just upgraded to Captivate 4 and we're noticing that we can't get the software to maintain a desired recording mode. If we choose the Custom option in the capture quick menu, and then go into the Mode screen in the Preferences, it still says Demonstration. If we choose Custom again in the Preferences part, then we lose settings we had previous configured for Full Motion Recording and in the Mode screen. This could go 'round and 'round. The fact that we clicked the Custom mode option previously in the other menu makes no difference.

Does anyone have any insight into this? Seems like a bug to us. The only we can do is still select all of our desired options but leave the mode on Demonstration even though that's not what we want.

Also, I've searched the forums thoroughly and can't find a straight answer. Seemingly randomly, black lines, or dotted lines appear in some slides when previewing or publishing. They are not visible in edit. Best I can tell, they seem to be residual outlines of pictures or text that are motion related or when we change screens suddenly when recording. We are recording on the Application mode. Should we increase it to Video to have the best frame rate, or even record in Safe, or is this a frame rate issue at all?

Thanks