I originally had problems recording with OSDng, but I enabled the swap space and gave it 16MB of space and I was able to test record for 30 minutes without any issues. So as far as I'm concerned, it's worth upgrading to OSDng.
Swap space had occurred to me as well, since the problem I was getting (it going to "Starting Application/Please Wait" then just crashing [returning to the menu with no message or anything]) was consistent with a program dying for lack of memory.
I added 100M of swap, but results were unchanged.