I opened a ticket with Mitel and they gave me access finally. It wasn't the flag, we do our recording/monitoring through Reporter Real-Time and apparently you can't disable the notification in Real-Time, only when you record it through the phone and now that's not working properly. It's Friday, 4:00 p.m. and I'm banging my head against the wall.
When I first dialed the feature code for record a call it said the feature wasn't available. I went into the DB and to my phone and the flags for RAC, I changed the Mailbox from "Associated Mailbox" to my extension, I left Mailbox User-Keyed Extension on "No" and I changed the Application to the RAC Application we set up when we first set this up.
According to the Mitel tech, I should be good to go, however, now when I hit the special feature for RAC it says "IC to RAC" and records MYSELF! *Facepalm*
I appreciate any other suggestions you guys might have.