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I have both an Olympus 210 and 310 camera. The 210, unfortunately, does not have a built-in microphone like the 310 does, therefore there is no sound with the video. Sorry to have to report this. You can go to this site and check the specs, and you will see it says "no" when it lists "Built In Microphone". http://www.camera-catalog.com/compares/popular/olympus_fe-210_vs_nikon_coolpix_sq
My advice: sell it on Ebay and upgrade to a 310 or better camera. Good luck!
This was done intentionally by the camera manufacturers. I agree that it is not fair but the purpose of the movie mode is not to replace a video camera. It just allows you to take short movie clips. Depending on how long you have owned the camera you might be able to exchange it for a model that does allow audio capability in movie mode as Olympus does have other FE models that allow for this feature.