When you record a show, Vlog It! records sound from the audio source that you have set up. Live Audio is unique within Vlog It! in that it has no presence the Action Area. If a microphone is connected and properly set up, then its signal will be recorded.
Though the audio from your microphone ends up being recorded, we refer to it as "live audio" to distinguish from recorded audio clips that you add through the Action Area. Like an audio clip (but unlike live video), live audio is unaffected by any action trays. If the mike is unmuted while you record a segment, any sound that it picks up will be included in the finished video even if you add an audio clip (or a video clip that includes audio). To avoid unwanted live audio in a given segment, either use one of the Flex Recording options to skip that section while recording or mute the microphone while recording the segment.
Unlike audio clips, you cannot trim live audio, fade it in or out, or move it within the show.