After applying the Windows 7 kb2803821 or the XP upgrade kb2834904, any WMV files recorded from webcam during Test execution will appear corrupted on screen. This usually presents as a half-frame video on import.
This is an issue with this Microsoft Update and is affecting several softwares like Adobe Premiere, Techmisth Camtasia, etc. (see here for more info)
As long Microsoft will supply a hotfix, please consider to remove this patches:
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Open Control Panel
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Open Program and Feature appl (called also "Add or Remove Programs")
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Click "View installed updates"
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Type in "kb2803821" in the search
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Uninstall the item that comes up.
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Reboot


This update will keep installing itself if you have windows update enabled. You can prevent the update from happening AND keep windows update enabled. Here's how:
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Start
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Windows Update
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Check for updates
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Select important updates
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right click the update KB2803821
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Select Hide Update



Credits for pictures and workaround steps: Adobe Forums
If you have problem uninstalling the patch with the above method, download this little program, save it on the desktop and run with Administrative privileges (right click, Run as administrator)
