Flossy, that setting is stored in the "flight.cfg" file in the "settings" folder. Use Notepad or Wordpad to open it. The line with "Autofilm" should have a "0" as follows:
0,Autofilm
to stop the auto-record. If it does and the game is still recording films, I am going to have to scratch my head a bit. Makre sure that file is not marked read-only. If you are running some type of file security software or anti-xxxx software, it may be interfering with the games ability to write to those files.