I can also confirm this issue for istanbul 0.2.2-2 on Ubuntu Hardy.
Selecting "Record 3D" resolves the problem.
** Changed in: istanbul (Ubuntu)
Status: Incomplete => Confirmed
** Description changed:
Binary package hint: istanbul
On a fresh install of Ubuntu, Xubuntu 6.10, the screencast flickers
between the video and a black screen at the rate of about twice a
minute. Video is unwatchable.
+
+ WORKAROUND:
+ Select the "Record 3D" option.
--
Flickering Video
https://bugs.launchpad.net/bugs/70830
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