Hi Mark,
Yeah, I was looking in the direction of the volume settings but it didn't seem to help. When I select my soundcard in preferrences instead of the Windows mapping, the volume in Audacity for record is set all the way down and it can't be moved up. I was scanning their forum Q&A sections and the suggestions made to others with that problem didn't work for me. The answer is in there somewhere. By the way, did you know there is a "developer" section as well? I think you can download the code or even get a developer's beta version to check out. Everything is under "get involved".
Fred