There is a whole series of information about recording glitches on the Yahoo KN7000 group forum. A good place to start is with message #625 which I posted. It basically says that my problem after checking everything else on my laptop was that hard drive DMA was not turned on. I believe that there is nothing wrong with the recording software. The limitation is that the .WAV file is recorded on the fly without benefit of much (if any) of a buffer, so hard drive speed is paramount as well as is an unfragmented drive.
Between this forum and the Yahoo forum, you can learn almost anything.