Ah, I see. Sorry, I though you wanted to keep the needle drop. My mistake. I will try again:
1. Keep the 'Wait for needle down' box checked (ignore previous advice in this regard!).
2. Record as you were doing before.
3. When recording is complete, go to VinylStudio's Split Tracks window, add at least one track and then advance the first green start-of-track marker (by dragging it) until it is just before the start of the music. You can zoom in as necessary for precise adjustment, and this will also get rid of all that crackly leadin.
You can get rid of the leadout and needle lift at the end of the record by moving the last red end-of-track marker back a bit. It's as easy as falling off a log, once you know how. As for splitting tracks manually, a bit of experimentation should soon see you right. Just ignore the automatic scan feature. As I say, it is not well-suited to what you are trying to do.