That explanation seems to be the same as the one I pointed out in comment #5 of this thread. When the code can't find VLC then it turns the stream button into the delete button. Also, since the code don't require confirmation of delete, the file just instantly vanishes. In my case it couldn't find VLC because I'm running the x64 version of Win 7 and that puts VLC into a different directory than the default one used by NEWA.
Athlon 64 3400+, 2GB RAM, Win7 x64 Pro, Hauppauge PVR-150, PVR-500, NPVR 2.5.9, 4 MVP's and a partridge in a pear tree...
On a clear disk, you can seek forever...