Almost all audio capture settings can be configured in the main window. However, you can see the most complete list of settings only in a game by pressing a definite hotkey combination to open Playclaw (you can create hotkeys for this action in the main window). Note that the current version of Playclaw can differ slightly from the one described here, but the main information is true for all versions.
The current version of Playclaw supports two audio sources (theoretically, it is possible to have even more sources). On the Audio tab, you can enable one or both sources and select a device used as a source. Usually one of the sources is used for sounds from a game, and the other is for a microphone. In Windows XP, it is not quite convenient to deal with the sound mixer, and in most situations, there is only one audio source available. For game sounds, that should be something like “Stereo mixer” or “What U Hear”.
For each source, you can enable recording only when a hotkey is pressed. If you do not press that hotkey (or hotkeys), Playclaw records silence. Once the hotkey is pressed, the program starts recording sound from the source. The option is very convenient for recording from the microphone (as unwanted sounds are not captured).
The “Transform to Stereo” option removes all undesirable channels that are present when you capture sound in Windows Vista / Windows 7. In these systems, Playclaw records and saves sound to Extensible Wave Format. The format was introduced by Microsoft 11 years ago. Unfortunately, not all editors can recognize this format (why? address your questions to them). If this is the case, conversion to stereo can be a solution to the problem. However, you should bear in mind that games sometimes “like” playing sound not only in the main stereo channels, but in all available channels. Therefore some sounds may be lost.
The “Mix Sources In One Track” option allows you to mix sounds into one track. AVI allows for more than one audio track in a file. But, again, not all editors and players can play the second or both tracks simultaneously.
Recording all audio tracks to separate WAV files can help in situations when stereo conversion is not applicable and mixing is disabled. In such scenarios, Playclaw records video to AVI, while capturing sound to a separate WAV file (or files). Then you can merge these files together into a single one in the editor.
For example, Sony Vegas can read several audio tracks in an AVI file, so you do not have to use mixing. However, the editor cannot read multi-channel sound from an AVI file. You’ll either have to cut the sound in stereo, or record to separate WAV files. Sony Vegas reads multi-channel sound from WAV without any problems. So, what do we get? Just what we see in the screenshot above: no conversion to stereo, no mixing, recording to separate WAV files. The output will be an AVI file with video and two WAV files with audio tracks.