I've just released Cankiri 0.2. It's not all that different from 0.1, as most of the changes are to improve the user experience by decreasing unnecessary clicks.
I've made the assumption that when you start Cankiri you want to record, so instead of waiting for you to click the icon, it will automatically bring up the save dialog. I've also added fallbacks so that if you don't have a place for the notification area icon, it will create a little window for just its icon. This isn't pretty, but it ensures that if you can start a recording you can also stop it. The actual recording is then the same. If it worked for you in 0.1, it should still work; if it didn't work, I doubt it will suddenly start working. Let me know if any of these assumptions are a problem for you. I think next release I'll add command line arguments so defaults can be changed; if so I'll probably allow deferring the save dialog.
I have not been able to address a problem in the area selector. Both my friend Pete, and bloodsk are unable to resize it. Pete uses KDE with xinerama on FreeBSD where not only can he not resize the area selector, it shades the part inside. But when he tried Metacity without xinerama it was still immobile. Bloodsk reports being on Ubuntu Dapper, and hopefully will follow up here with what window manager or unusual X settings he might be using.
As if I didn't have enough other projects on my hands, I've just put enough finishing touches on Cankiri to release it into the wild licensed under the GPLv2. It came about after looking at Istanbul around version 1.2 and being disgusted with the limited features and overengineering in the code. Come on, you don't need two directories and at least five files for this functionality. Really. Since then both Istanbul and I have added screen area selectors and audio recording. I've got all my code in one 400 line file; Istanbul now spans many more files. Where this really shows: ls -l.
It's amazing how concise you can be with python once you know what you're doing. I hope you find Cankiri easy to use, as a single-file distribution leaves no room for documentation. Let me know what you think.
(All the jabs at Istanbul's code aside, I'm very grateful for the GStreamer plumbing I've been able to take and reapply. Since I've yet to really learn GStreamer, this has been critical for me.)