Hi,
In start recording dialog, you can specifiy the detailed path in "Application" box, instead of using the default value. You can try,
1. Since your mstsc*32 is blocked, you can try 64bit mstsc. You OS is 64bit, there should be a 64bit mstsc.exe in the machine (in system32 folder).
2. Try to swich to a lower version of mstsc client. (5.2 or 5.1, google it)
If convenient, please use process explorer to generate a log for the frozen mstsc process and attach it here.
Link: http://technet.microsoft.com/en-us/sysinternals/bb896653.aspx
