Ahead have responded to the Nero Recode Bug that was reported yesterday by CDfreaks.com

All data contained in the designated temp folder for Nero Recode will be compeletly erased before every new recoding operation. Per default, the local TEMP folder is designated as the temporary storage directory for Nero Recode files.

Please ensure that the TEMP folder does NOT contain important data!

Before erasing the folder content, a warning appears which points out that all files will be deleted! This could result in serious data losses! Especially in case that you choose drive "C:" as target or TEMP directory for Nero Recode, all data on drive "C:" will be erased after you confirmed the warning!

As soon as possible, Ahead Software AG will publish an update that solves this problem!