I may have solved the issue. While I was recording I pressed the mute button on my surround system (I wasn't doing what you think) and Playclaw recorded my screen all the way through. This is a sure case of the drivers for my onboard sound not being updated.
When I tried to update in the past I could not access my sound in Windows for some reason so I left it alone. So I am ordering a sound card and that should solve the problem. I also get BSoD when I watch video on You Tube at times and the new card should help with that also.