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My first attempt at recording I selected a directory and then there was no video file, only an audio file named recording.wav. I soon realized that I needed to put a file name. Thus I changed it and added a file name (with the avi extension), I typed the file name in manually because for some reason couldn't browse. PCSX2 started outputting a video file in that directory, I however noticed there was no audio file but shrugged it off as it was being recorded with the video. But it wasn't so now both the "Browse" and "Configure" buttons on the recording dialog wont' do anything and I can only get PCSX2 to output video if I type in a path manually. Audio won't output at all anymore.

EDIT: I couldn't fix this, I just used fraps instead.

...Here it is in steps.

1)Run your game
2)Press F12
3)Click browse, select some folder and also add a filename with the .avi extension
4)Press ok, recording starts
4)When done, press F12 twice to stop

You get a video file with the filename you specified, in the folder you specified.
You get an audio file named recording.wav in the folder the executable of pcsx2 is located

If you somehow giga-messed up, open GSdx.ini and delete everything after CaptureFileName=