I encountered the same error message while editing, not capturing. I expect, like me, you're using VirtualDub's feature that lets you continue capturing beyond the Windows limit. Therefore, VirtualDub creates multiple segmented files during the recording process. VirtualDub has a nice feature that, when you open the first file of the series for editing, it automatically joins all the pieces together so you can view the video as one continuous stream. The problem is that editing the video also restricts you to the Windows file size limit. What you're probably doing (and I did it myself) is editing the video in its fully pieced-together state and then trying to "Save as AVI". VirtualDub begins the saving process, but when it hits the Windows-imposed file size limit, it creates that (quite un-helpful) parameter limit error message. My workaround for this is to go through Explore and RE-NAME each file segment of the segmented file to a new file name. For example, if I captured an auto race, I'd rename the first file from CAPTURE00.avi to Race1.avi. The purpose of this is to trick VirtualDub so that it no longer knows it's one continuous (segmented) video, and will pull up each segment individually. I can then edit those segments that require editing by themselves, and save them with no more parameter error. To take this a step further, since I sometimes want to join two segments together using transitions in Ulead Video Studio, I set the file size limit in VirtualDub to a maximum of 1.0gb. Since each file is no more than 1gb, I can join the two files together in Ulead Video Studio, and the new combined file stays under the Windows 2gb limit. Whatever you choose to do, just be sure to keep VirtualDub's file size maximum below 2gb. I usually compress the individual files in TMPGEnc to VideoCD standard before combining them in Ulead Video Studio. Then I merge the pieces together in TMPGEnc, and BEHOLD! I burn it to disc.
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