I figured it out. It might be posted somewhere, but all I had to do was hit "A" during the playback to hear the microphone recording. It also there when I put it in vegas to edit.

Problem solved.

I just downloaded the Action! 30 day demo and love the quality of the gameplay that is recorded, but my voice is not recording during the recording though I have the setting as "Always Record" under Microphone. Please advise.