The "error parsing arguments" message indicates that there are incompatible versions of the interface and the commandline tool installed in your computer. The versions in the feisty repositories are compatible with each other, but incompatible with the latest source distributions, so my guess is that you successfully installed the commandline program from source and you didn't remove it, before installing from apt.
You can test it by running ~$ which recordmydesktop on a terminal.
If it prints /usr/local/bin/recordmydesktop, you are using the version installed from source. You can also run this to see the version number of the program in your path ~$ recordmydesktop --version
In order to remove that from your computer and let the version installed from apt- to be executed, get the recordmydesktop-0.3.4.tar.gz tarball again, unpack it and run:
~$ ./configure ~$ sudo make uninstall
Or if you haven't removed the files just get in the folder and run ~$ sudo make uninstall
After this you should be able to run the program normally.
If you want the latest version in an easy way, go to http://www.getdeb.net/ and download the precompiled debs.
Also another thing:
recordmydesktop -o /root/out.ogg ...
Why are you running as root? That's the quickest way to cripple your system!