Tedl, I don't have Cakewalk Studio...I have Cakewalk Pro 8, but I think that if you go to Tools>Audio Options>Advanced, you will see a box titled "Enable Simultaneous Record/Playback". If you have this, you just check the box, click OK and close out Cakewalk and start it up again. If your soundcard is full duplex, then you should be able to record on channel 2 and hear channel one simultaneously. If this doesn't work, you need to make sure that your soundcard is capable of full duplex operation. Hope this helps you! bOb