Hi Philip,
The behavior you are observing is caused by the fact that there is a Name Mapping scheme for the objects in question and/or the Map object names automatically option described in the Name Mapping Options Dialog help topic is enabled. This makes TestComplete use mapped names for your application's objects. If you remove the Name Mapping scheme and disable the option, you will see how the Use native object names for TestComplete object names option affects the recording.
BTW, please note that you need to change the properties of the current project, not the default project properties available via the Options | Default Project Properties... main menu item.
