WM Capture Error: "Cannot connect audio to wave parser", "Failed to set up recording"

[Rocco]

When trying to capture screen videos with WM Capture a pop-up says "Cannot connect audio to wave parser" then "Failed to set up recording". I went thru the audio setup numerous times.
The sound on my PC is active and volumes are all max. with none muted.

It used to work but no more. What's the fix? I purchased this in Sept. '09, is there an update I can download? Please recommend a site that has a video that SHOULD work to check this out. Thanks.

P.S. Are there sites that block this application?

Thanks.

[Rocco]

I've since uninstalled the pgm and re-installed it at Ver 4.2 (I had 4.1). I use XP and IE8 and things seem to be working SO FAR (captured one YouTube video fine) with the following settings;
The Audio setup/Test button is grayed out, Audio bit rate is 128 Kbps, I chose the High quality (single core CPU) setting, Video bit rate=3000 Kbps @ 25fps, Video Accel. is disabled, Video format is MPEG-2, recording video & audio, max file size= 2000 MB & time = 2hr, Univ. audio driver activated w/ 0 delay, keep WM Capture on top.

Here is what Cheryl Wester from the support suggested previously

Originally Posted by Cheryl Wester

The Universal Audio is set up automatically when you are using a Vista machine. Go into settings and under audio select Audio Setup/Test. It should be checked. If it isn't check it and see what happens. Thanks. Also, make sure in Recording options that you have Record Audio checked.

and

Originally Posted by Cheryl Wester

Make sure you are using the latest version. If you are not sure uninstall and reboot prior to installing again. If you continue to have an issue please contact tech support as more detailed info will be needed.