I installed Absolute Sound Recorder and I thought it was recording fine, but i was wrong.
So I tried Sound Forge as well. It failed as well.
I have an ASUS P5N-D mobo, and was using the drivers from M$ with Win 7 x64. I suspected this might be a problem so I grabbed the Realtek drivers off ASUS website, installed, rebooted. Fired up Absolute Sound Recorder again, and Sound Forge as well. Neither seem to pick up an audio signal.
My recording Controls for Absolute Sound Recorder are either Microphone or Microsoft Sound Mapper. I have it set to Sound Mapper as Im not using a Mic.