Yes, there is a check in the "record sound" box.

I am using SV, and i cant get the audio to record. The video works just fine. Im 99.9% sure the problem is with my setting for my computer, but I just got vista and am confused on how to get to the little screen where they show "CD Volume" and "Line Volume" and what not. I cant find it in the control panel, and when I right clickt he speaker icon, i get "open volume mixer", but its not what im looking for. Any help would be greatly appreciated.