There are check boxes on the right side of the film viewer, check the one that says "Use recorded views." If you use a hat switch then it will track which direction the head was looking, but not it's position relative to the airplane. If you are using TrackIR then it doesn't record anything. You can select a certain plane to target using TAB then follow it by pressing something else... but for the life of me I can't remember what the second button was.
As for sound, it should play by itself. It's possible that there is a bug with the film viewer which is keeping you from hearing them (probably wouldn't be the first time). It could also be the codec you used for converting.
It's also worth noting that even if you play with low graphics, turning them up before opening film viewer will change the settings that the film viewer renders it's shots. Even if you PC is a low end one, when you convert the video to an AVI you should get a pretty decent film out of it.
As for the external recording programs, I don't use them for a host of reasons, the biggest being that no matter what I use the film comes out butchered, choppy and unusable. The problem is that my hardware is too old and was never meant perform tasks like those.I just convert to an AVI because it works around my computers short comings (though it does take quite a bit of time to render out). I use Cinepak Codec by Radius when converting and it's consistently smooth.