Make sure you have sound connected from the AIW to your sound card (internal audio cable or external with the av out dongle). I assume you do since you get sound. Secondly run the intialization wizard from the MMC (should be under the capture tab in setup options) and make sure you have the proper sound input selected i.e. line, aux in, cd in etc. . Lastly open the audio properties and select advanced then choose "for recording" and make sure none of your input lines are muted.