CamStudio Audio record from speakers is not working.

For CamStudio, Whenever I try to switch it to record from the speakers I get this message "WaceoutGetSelectControl() failed" Any idea as to why and how I can fix it?

Sounds to me like a coding error. First you should make sure you have the most recent up to date version of CamStudio, and if that doesn't fix it, try uninstalling it and reinstalling it. If you can't get it working, try another program. RoboCam, HyperCam, and FRAPS all do the same thing, try one of those.