Solution -

1.) The User ID and Password you entered during installation may be incorrect, or not have administrative rights. To change this, right-click My Computer > Manage > expand Services and Applications > select Services. Double-click the CVRS Recorder service. Go to the Log On tab. Under the Log on as heading, select the This account bullet.
Enter a user account that has administrative permissions (such as administrator) in the first box. Type that specific user account's password in the next two boxes. Click Apply.

Note: If you enter a user account that does not have administrative rights, or enter the wrong password for that account, the VS Recorder will not be able to activate the remaining channels.

3.) Click the General tab now. Click Start to start the recorder service (if it was already running, you may need to click Stop first). If you still receive an error: "Error 1069: The service did not start due to a logon failure." then your user account or password is still incorrect. If you do not receive that error, your user account and password are correct. Reboot your computer.