Before recording voiceover narration directly in Captivate, you'll want to calibrate the microphone you intend to use from inside Captivate.
After selecting the slide to record the narration to, choose Audio > Record to > Slide.
In the Slide Audio dialog box, click the blue text link for your microphone.

On my computer, the Built-in Input is always listed here, even if I have another microphone connected to my computer. But you can change that on the next step.

In the Audio Input Devices drop-down menu, select the microphone you want to use.

Select the Bitrate at which you want to record. FM should be high enough quality for ordinary voiceovers for eLearning. The higher the bitrate, the better the sound quality--but the larger the file and the slower it is to download.
Click the Calibrate Input button to open the Calibrate audio input dialog box. Ensure that your microphone is on, and not muted. Then click the Auto calibrate button.
Click the Calibrate Input button to open the Calibrate audio input dialog box. Ensure that your microphone is on, and not muted. Then click the Auto calibrate button.

Speak into the microphone. If you can't think of anything to say, read the text of the dialog box. The level indicator at the right may display various colors. When the text below the indicator turns green, you have calibrated your microphone.
After clicking OK, your chosen microphone is listed under the Device heading... and you are ready to record voiceover narration.

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