Windy Mac,
I have been working on solving this same problem. The problem doesn't seem to be in the BIAB or any of the platform issues. It's in the Asio and Soundcard. It will allow only one input and one output so you can only do one thing at a time. I found some help on this issue in a video when I googled "Windows 7 and Asio" I'd post a link but I don't know how to do that. In the video there were several ways discussed to work around the problem. I've tried them all and finally settled on getting a USB external soundcard to handle my other devices with extra in and out ports. Hope this works. I downloaded the latest Asio driver as a start and found the new panel to be a big help in selecting the in and out ports.
Good luck in your efforts.
Val