A long time back i posted Mediaencoder doesn’t work with Windows Vista for doing screen captures. On Windows 7 mediaencoder at least is a little more graceful – in that it disables the Video device. (see image below)
When we built Microsoft Test and Lab Manager we built the video collector around Mediaencoder. So it was with great relief we found there is a patch!
FIX: You may experience issues when you use Windows Media Encoder 9 Series on a computer that is running Windows Vista.
So what does this all mean? If you want to capture video as part of your Test Cases on Vista or Windows 7 you need to install BOTH Mediaencoder and the Patch.