No you can't capture a region but Fraps does try to find the region of it own accord, like when you capture a video playing for example, but it gets in wrong sometimes. 

Two passes make a nicer video with Xvid, don't know if you've done that before but you only need to covert the sound on the second pass so I turn sound off on first pass.   

It's not a biggy, it would be nice if they introduce that some time though.  But for now with the small videos I am doing it is fine using VirtualDub to do it.  The most important thing is it all works hehe

Freddy,

I have an integrated sound card and use CamStudio all the time. You just need to play with the Recording Options (from mic, speakers,etc.).
Be sure to turn your system volume up during your trial recordings so you can then make any desired adjustments.

Luck!

Thanks Art, I cannot remember if I gave that a go now, I will look into it