iMovie '09 Won't Record 'Audio' When Using Built-in iSight Camera on my iMAC

I'm running 10.6.8 on my iMAC and have iMovie '09.

I am trying to use my built in iSight Camera to shoot and record a video (with audio).

The video records fine, but I have not been able to record the audio. In System Preferences Sound Input is set to ''Internal Microphone - Built-in" and the meters show the mic is working, and Sound Output is set "Internal Speakers - Built in".

I did a Google Search and saw where others have had this or a similar problem but I haven't found a resolution.

Thanks in advance for any help on this.

 

Problem solved - pilot error!