Yes. You must put a checkpoint anywhere you want them to respawn. The player will respawn at the last checkpoint crossed. Checkpoints are found on the Markers tab.
System Specs: OS - Windows 7 Home Premium 64-bit SP1, CPU - AMD Phenom II X4 945, 3.0Ghz, RAM - 8Gb DDR3, GFX Card - 2048MB NVIDIA GeForce GT 640, FPSC-R Version - Beta 1.0085