(repaint-sheet instance-inheriting-from-output-recording-stream +everywhere+) does not work.
The reason is %handle-repaint in recording.lisp. It rewrites region to a bounding-rectangle regardless the type of the region. Hence, %handle-repaint needs to check whether region is region-equal to +nowhere+ or +everywhere+, the only unbounded region types that do not participate in the bounding rectangle protocol.
Please comment on my patch, because I personally don't like it. It seems a bit ackward to make explicit checks for these two regions, probably there are better solutions.
If you need something to reproduce the bug, try http://paste.lisp.org/display/15284#3 - uncomment standard-output-recording-stream from the long list of superclasses that imitate those of application-pane to reproduce the error.