I'm sure someone out there is having issues with recording their MUGEN matches. This thread should solve a good deal of your issues.I use Fraps, have Render mode set to OpenGL, and Blit Mode is at Normal. The frames per second counter doesn't show up, but it's there. I can tell because the movement isn't as fluent. Anyway, when recording, sometimes your video might come out upside-down. This can easily be fixed with common video editing software. (I use Sony Vegas)Also, if you want to save space on your computer, mute the BGM in when recording and add it in when you're doing the aforementioned editing.So that should hopefully solve most problems with recording your MUGEN.
I know this is an older post but I just wanted to say thanks, as I am just now slowly making the transition to 1.1 and was wondering about this.