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I don't believe Captivate can capture that kind of audio. But how about a workaround?
Head over to the link below:
Download and install the FreeCorder application. (It's free!) Then record the audio separately and just add it to your Captivate project.
What is the "System Audio" option from the Audio Settings when you click Audio->Settings and you will see that from the "Input Source" group box. In my machine, System Audio option is disabled, I think this option will allow me to record the voice of the video that I am going to record but maybe my sound card is not supported since this option is disabled.
Indeed Captivate does offer the option to record system audio. But as you have seen, it is a bit dependent upon the capabilities of your audio hardware. That's why I suggested using FreeCorder. I have no clue how it manages to capture audio where something like Captivate is unable, but I'm just happy it works. At least it works for me.