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[Jim_Hardin]

My thanks to Terry (threwst) for outlining this! All I did was take the screencaps  

Vista handles Audio differently and you can pound your head on the monitor till one of you breaks and still record nothing  

You want to make sure the device is Enabled for Recording. This not a driver issue but a Vista oddity!

Easy to check & fix:

Open the Control Panel:



Then open the Sound app



And click on the Recording tab.



Note: you may need to right click on any item to turn on Show Disabled Devices as well as Show Disconnected Devices.

In this shot FrontMic, Microphone & Line In have nothing plugged in.

And Stereo Mix is Disabled with the mouse poised to Enable it…

The only thing working at this point is Line USB 2861 Device (Roxio’s Capture device)