You can change what modules are displayed by going to Options, and then checking each module listed. That will display them all, or as many as u want i.e. CD, Mic in, Line in etc. You will see your soundcard listed in the window box as well.
Repeat the excercise for "Recording". Make sure the What u hear box is UNCHECKED! And that the "line in" is checked. And nothing is muted and all volumes are maxed out.
That should set you up okay.
BTW, you can display both windows recording and playback mixers at the same time by going to the yellow speaker icon and double clicking twice. You will then need to drag the top window down the screen to reveal another underneath. You then select one of the to be the Recrod window Options>properties>Recording)