It is a desktop computer. Heat isn't much of an issue in this particular desktop, CPU temp never above 70 under full load and it doesn't underclock at all.
As for the GPU settings in the NVidia control panel all I did was adjust the global application settings (stuff like Anisotropic filtering, vsync, ambient occlusion, etc.). When these settings were not set a certain way almost all of the captures were glitchy. After having set these the capture is usually problem-free though as I said there is the odd time where every recording in a session will be glitchy, but usually the entire session is fine - I don't fully understand the reasoning behind it, but it seems like it might be an issue where the application doesn't start out properly since either the entire recording session is perfect or glitchy. Probably around 1 out of 10 sessions is glitchy (so I suppose I could avoid the problem by doing a quick record test before starting the session to make sure there aren't any issues, and just restart the application if there are).
Would 4GB of DDR2 RAM be a bit of a hindrance for Videowave considering Windows eats up a chunk of that for background processes?
Is Videowave not fully compatible with Windows 8 perhaps? Seems most people are using Windows 7 or earlier.