Here is what Cheryl Wester from the support suggested previously
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Originally Posted by Cheryl Wester
The Universal Audio is set up automatically when you are using a Vista machine. Go into settings and under audio select Audio Setup/Test. It should be checked. If it isn't check it and see what happens. Thanks. Also, make sure in Recording options that you have Record Audio checked.
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and
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Originally Posted by Cheryl Wester
Make sure you are using the latest version. If you are not sure uninstall and reboot prior to installing again. If you continue to have an issue please contact tech support as more detailed info will be needed.
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