No Mouth Movement

I took a look at the puppet you've selected and the reason you're not getting any "smile" or "surprise" reactions from it is that there were none built into it in the first place. There are only 3 possible mouth shapes that the camera will recognize: smile, neutral and surprise. If you really need the surprised expression, you can edit the original puppet (either in Photoshop or Illustrator - both are and option with this puppet) and copy the "Oh" layer and rename the copied layer as "Surprise."

I can't tell from the image whether or not you're getting audio and visemes recorded. But the image does show your microphone is active, so you shouldn't be having any problems getting audio. Another option is to record the audio as a separate wav file and use  "Compute Take from Scene Audio" to get the correct visemes for your dialog. Sometimes when I can't get just the right motion, I have to isolate the part in the recording and record each part separately. Also, not being in the center of the camera and having too much clutter in the background can sometimes interfere with the motion tracking.