This isnt a bug, it is google protecting themselves. This type of activity puts significantly more load on their system than the typical 1 or 2 page search results, and it does not result in any potential revenue. I can see why they want to stop this kind of activity, cant you? It is against their TOS, so it is not a bug but something very much expected.
That said, Every time I use Instant Article Wizard I dont have any trouble at all. But I will usually look for ONE ... maybe two key words. I do look for 300 results at full speed, all databases, and never get captcha. I get captcha when I run my SERP checks and backlink analysis. But I have that set to full speed, top 1000 results, and usually search over 100 key terms (at once) like this (it would be crazy for me NOT to get a captcha, haha).
I discuss this further here
http://jlforums.com/new-product-ideas/google-captcha/But I cant imagine this being a big enough problem for the typical IAW user to justify development of what I discuss in this thread.
-- Well, on second thought,
Jon, this could be fairly simple. Have IAW interactively prompt for captcha entry so that the search can continue on its merry way. The other stuff I mention in the thread may be 'too much'. I am no software developer though so again I could be off in my estimated simplicity.
For now, if you get captcha, wait 1hr, 2 hrs, maybe even 1 day, try fewer key words, slower search speed (I didnt know you could slow down speed on IAW ... Cool).
Off to make more articles!
-Brian