error helper 1

[VCRvideocapturing]

PC has 4GB free space

what? 4gb of free space can be eated by paging in some seconds.
to prevent space issues keep at least the amout of RAM you have free on your disk ( 32GB of ram.. 32 gbytes of free space,   64GB of ram.. 64 gbytes of free space)
if you have less than 16 gbytes of ram keep 16 gbytes free.

...

My PC does not have 32gb space.
I did not know I would need that much.
All other apps work fine.

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even the PC has 4GB free space where Hybrid temp folder is placed then why should it say anything about not enough space

Encoding it 35k .h264/.mp4 codec, the file is 1-2GB max

So you will at least temporary need 2-4GB (raw streams + muxed streams) + potentially needed space by the encoder and the scripts, so 4GB free might not be enough,... a debug output should show what Hybrid calculates,...

My using the latest version.
I'm encoding to a 3TB hard drive