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I just "discovered" that SimConnect offers video recording of the live sim into an AVI video format, stored in "My Documents\My Videos\" folder. From the SimConnect documentation:

Turn on or off the video recording feature. This records uncompressed AVI format files to:My Documents\My Videos\

I've tested this and it works in FSX-SP2/A but NOT in FSX-SE. Does anyone have any idea why? Maybe the Dovetail folks would be kind enough to clarify this?