1. Go to the volume properties (lower right hand of desktop, the icon looks like a yellow speak next to the clock), double click on it.
2. Now go to the Options menu and select properties.
3. You see Adjust Volume For: Playback, Recording, Other, select Recording.
4. A list box at the bottom of the screen should a bunch of devices, make sure CD-ROM/player has a check mark next to it.
5. Now say Ok and a window showing the Volums for the recording the devices should be showing, select CD-ROM and make sure Line In is not selected and the volume of the CD-ROM is up
6. When your done recording from the CD, select Line-In again, otherwise you won't be able to record from it!
I hope this help because I'm tired.
SirBroch