I experimented a bit before answering. It starts recording video only in the power saving modes (LCD, etc), if the power save settings is off it doesn't do it.
Thanks for the update! I'm now able to reproduce this on my S100 as well.
BTW, the only power setting which is working seems to be LCD (I haven't tried the playbutton mode).
The script make all the know power saving mode for every Canon P&S available. But not all modes work on all cameras.
The three that should work on the S100 are BKLite, PlayKey, and LCD. The DispKey only does anything on cameras with OVF's. And the ShrtCut key only works on cameras that actually have a shortcut key. So neither will work with the S100.
Note that with BKLite the display will turn back on after each shot. It's a know limitation of the function - the script immediately turns it back off.
In some power save modes (I don't remember specifically which) I will even get a video every 60 seconds (alongside the photographs).
My testing indicates that BKlite and PlayKey mode both work properly (i.e. no random videos). So it seems to be related only to the LCD function and its underlying call : set_lcd_display(). Should be easy to track down from here.
I'm not using the the "Video" button as my <ALT> key, I checked and it was by default on Playback.
I tried it both ways and the issue with set_lcd_display() it there in both.