Sound Capture Preferences

The device selected in the Input device pop-up menu will be used when recording audio. System Default will use whichever audio input device is selected in the Sound pane of Mac OS X's System Preferences. Devices that are currently in use by a different application might not appear in the menu; you may have to quit an application for it to release the audio devices.
When you have selected an input device, use the compression pop-up menu to choose an audio compression scheme. There are presets for better audio quality and for better performance (that is, less resource usage); you can also customize your own compression setting.
While recording, a temporary audio file is created; this file is moved inside the outline file once recording is complete. If something unpleasant happens while recording and the audio file fails to find its way into the outline, you can recover it from the temporary recording folder. The Temporary Recording Folder pop-up list controls where the temporary audio file should be created.