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The FE210 is a very low cost basic video stills camera. Although it has the ability to record video when needed it does not record audio as it lacks the hardware to do so (click here to see the Olympus model specifications which clearly show no sound recording facility listed under Movie Recording System). On your camera it's really only a free taster of video simply because the camera shares hardware with other models in the range which record both video and audio. Keeping it basic on the FE-210 keeps the price down as many users don't want to record video and so don't want to pay for unnecessary features.
I hope that my speedy answer has saved you further frustration and reassured you that you are doing nothing wrong with your camera. Please take a moment to rate my answer.
I have the Olympus x-42 and had the same problem. My camera has a microphone but no speakers so i can only hear the videos which i have recorded on the camera on my computer. If your camera is the same make as mine, maybe we had the same problem?
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.