jaxsnop,
RECDIR is a Bash variable, in your ini file you've just changed its name.
You need to change its value, i.e. "records" to something else:
Code:
[Actions]
A S = !RECDIR=music; [ -d "/mnt/us/$RECDIR" ] || mkdir -p "/mnt/us/$RECDIR"; arecord -qN /mnt/us/$RECDIR/$(date +'%Y-%m-%d_%H-%M-%S').wav &
A E = !pkill -f arecord