Start, programs, accessorys, multimedia, soundrecorder   is where your ussually find that recorder.
 Check to make sure everything is sounding good there.
Once thats done, test in AH, should work, if it doesn't.  
Setup/voice, "use wave in"
Try switching this & test again.
If still no go its possible that you've got a iffy onboard sound card. Consider adding a cheap SB