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When I record a video that is over 25 minutes, CamStudio always gives me an error message telling me it can't copy or delete the sound file when I stop recording, the video is not saved.
I found that using the default audio format of PCM causes this due to the audio file being > 2 GB.
Try setting the audio format to Microsoft ADPCM ~ much better compression.
It's not compressed, it's just less data that is saved.
But this won't repair the bug. Here's a fix suggestion: Record data in a new file when the size is too big. This is how Fraps records big files.