I went back and did more research before coming to work, this morning. I found what a few have posted above.
Favorites have NOTHING to do with recording. The box will change the channel automatically to WATCH a favorite, but recording is not part of the equation. A pointless and confusing feature on a DVR, but perhaps I'm just upset because it took me a week to figure this out.
Recording supports the same additional options that favorites does, so the frequency can be set to once, regularly (daily), and weekly.
The fact that favorites involves a frequency led me to believe that the record function was for one-off recording. Bad assumption on my part.
I knew the limitations of the box when I bought it, namely can't playback while recording. I found out about a few when the unit was already on its way to me; specifically the two power issues, power has to be off to receive guide data, and if you power off during a record, it kills the recording. And now I get to deal with steaming pile that is the Gemstar guide software. The power issues, when combined, are a major hassle. They may not have broken the deal for me, though, had I known. After all, I thought I had zero other choices for recording HD (I cannot receive OTA). The software just kills it for me, though. Other PVR/DVR manufacturers have had better solutions (full text search, first run/rerun filtering, etc.) for years, yet we get stuck with this crap on a $1000 piece of equipment. On a $5-$10/mo cable box, where I make no capital outlay, perhaps, but not on a retail device at this price point.
This will likely be the last LG product I buy, and without a doubt the last thing I buy that uses Gemstar.