Recording Not Processing Error

I get an error message when trying to record anything from the camera or microphone. My cam and mic connect (I can see the video, and the microphone volume indicator moves when I speak into the mic).  It shows them recording when I click the record button.  Then when I click stop it says "processing" for a while and then I get an ugly black "Alert" message that says "Error Processing File".   Video is still showing and active when I get this message.

Does anyone know if this is a dolphin7 issue or related to my RMS hosting, which is hosted through DolphinInstalls.com.  They said they support D7, but they don't know why recording is not working.

Please help, Thank you.

Please make sure that you was given credentials for new Dolphin 7.0 RMS from your hosting and you have entered it in Dolphin admin panel.

Or maybe you are installed your RMS by yourself then you need to check if new Dolphin 7.0 RMS is installed and properly configured in dolphin admin panel.

I am currently hosted on Arvixe shared acct.  They won't run rms rc's.  They are waiting until there is a final version.  I am using a 3rd party rms hosting service from dolphininstalls.com for the rms.  It works for the chat, im and board, just not for recording.  But they have rms rc1 running and obviously not configured correctly.  I spoke with them about it several times.  They are going to install rms rc2 and try to get it working properly.  I also found other possibilities for hosting if I need.

Thanks for the help