Choose fixed region and checkdrag corners to pan. After starting the recording move one of the 4 corners of the region and then stop the recording. Watch the video and after moving the region the whole video turns 90 degrees and is warped. It gets worse each time you move the region. It happens with all encodings. This is with CamStudio_Setup_v2.6b_r294_(build_24Oct2010). I tested 2.0 version and it works fine.