If your video resolution is set to 6400 x 480 then you will have this problem on the older version of software. You can do either upgrade the software to the latest version or do the following steps to fix.

1) Configure --> Video Source Change the Video Resolution to the one higher than 320 x 240 on V6.1 and below 640x240 on 7.04 +.
2) Configure --> Camera/ Audio Install Now, Audio and Wave out are no longer grayed out.