Watch what happens when you click Application Audio. If you are having issues with not been able to hear the sound in a recording then follow this video and make sure your software is doing the same thing.
What happens when you click Application AudioUpdated
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I have had no problem recording snippets of video with audio intact from .mov files. I have been trying to record the same off of You Tube and other online sources and NOTHING WORKS. I also have Studio version, it has sunflower 16 channel. I need to have a simple check list. BTW, I have never seen a screen that looks like anything in the video above. When I open ishowu studio, it simply opens this box I have to get around that demands I give them info. I bypass that to get to the record button. There, I have an option to click application audio.