I submitted my question to the TechSmith Support discussion board and received this answer a few minutes ago:
In the Captions options you have the Overlay and the Display options enabled. Here is a screen-shot of that.http://screencast.com/t/Xussqc1hF5
Also in the Production Wizard use the Custom productions setting-> SWF/FLV Flash output then click Next. Click the Flash Options-> Control tab check "Captions initially visible" if you would like the Captions visible when you start the video.Please let me know if you have any further questions.
Thank You,Travis
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I tried these steps and I still can't close the caption area. I emailed TechSmith back and asked for more help. I'll keep you all posted.
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