Thanks for replying Bob. Right after I wrote my last reply I went through everything one more time and found it I checked the Sound on Win7 and found the problem.

Even though I had selected "Line-In" for recording as the default and only choice. I noticed that the microphones were not selected as well, but they were disabled. So I clicked on "Stereo Mix" and disabled it. Problem is solved and nothing else was effected. I still wonder why only this one program picked it up. But it is fine now.

Your reply made me take one more closer look at the selection box.

Thanks again, Wayne,