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Are you sure you selected Line In in the recording section of the control panel, and not in the playback section. It's an easy mistake to make.
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Yeah, there's only one drop-down menu labeled 'Record Source.'
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It's highly doubtful that your sound card has phantom power. The noise is most likely the result of the crappy pre-amps on the sound card.
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Haha, I gotta stop using technical terms before I really know what they mean. What's the difference between phantom power and pre-amp power?
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Any idea why HS doesn't see the line-in?
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It turns out that I should have rebooted the computer after switching inputs - that's what I get for working on computer problems at four in the morning.