Input is correct, output when I had a similar setup a long time ago was Audigy 1/2 (I don't recall Master even being an option there).
The next layer is your Windows control panel sound settings, you need to ensure you have the line-in active and the input levels up most of the way. Also be 100% sure you're using the correct input jack on the sound card.
You might want to experiment with the ASIO4ALL sound driver as well, once you get a grasp on these things. It will likely provide much lower latency, so any delays you hear when trying to perform multitrack will almost vanish.