Help with Panasonic DMR-ES40 - Flexible Recording Mode

I am trying to use FR (Flexible Recording) Mode to Dub from VHS to DVD.
When I program the FR mode for the requested time; ie: 2:25, the menu provides only two selections; START or CANCEL.
When I select START, the unit immediately starts recording the TV input. When I select CANCEL and initiate the DUB Record function the unit defaults back to the previous record mode.(LP, SP, etc)
The instruction manual states FR Mode can be used for dubbing but does not say how to do it.
Has anyone run into this?