Please select emulator.exe to record. It's under "C:\Users\username\AppData\Local\Android\android-sdk\tools\" by default.
Set command line as @emulator name. Eg: the emulator's name is test, put @test into the command line.
If you get "emulator.exe has stopped working" error during recording, please try to allocate different (most likely lower) amount of RAM for your emulated device. Also, some graphic and OpenGL issues found that can be fixed by changing default display to HVGA or setting a lower resolution in AVD.