Matinee movie freezes on start

I’ve just discovered the same issue. (I believe)
Using Matinee’s “Render Movie Settings” with the Capture Type set to “AVI” at 640x480 (4:3) it goes into capture mode and looks like it works. However when you try to open the video file it appears to have no frames and shows only black.
I can still capture a JPG Sequence fine without any issues.