Nope. VC does not read prematurely anymore. This was solved by using a .tmp file and then renaming it to .wav However, as some users have noticed, if you have an active "normal" microphone listening at the time that the wav is renamed, there is a conflict when VC tries to open the wav even though it is processing sound already (from the microphone).
This will be resolved in the next release, but to test it you can simply put VC into off mode to see if it fixes the problem. Or you could even use the events generated by VoxWav to turn VC off when a .wav is on its way, and then back on when the wav processing is complete.
I've already fixed this, but I have a couple other things I want to do before I upload 0.960.
Also, note there is currently a bit of confusion because I put out a second version of VoxWav 1.2 that I called "b" but there is no way to know for sure if you are using 1.2 or 1.2b. If you are not sure you could reinstall from the apk currently on google code, since it is the latest. I will release VoxWav 1.3 soon so there will be less confusion, but again I want to make a few changes first.