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Just to clarify, after recording a timeshift video you don't have the option to edit the video?
Which android version do you have?
could you open the video with the Video app instead of the album app
When you select the video > you should see the video editor icon on the top right side (the clapboard icon)
which video app version do you have?
does it work while on safe mode?
http://talk.sonymobile.com/t5/FAQ/How-to-boot-your-phone-into-safe-mode/m-p/348008#U348008