I haven't worked with Win2k before, so I may not be able to be much help. But you don't have a volume control bar like other versions of windows? Sounds odd to me, but W2K was intended as a business app if I recall, so no surprise if it isn't there.
Specifically, I was looking more along the lines of the volume control bar, which should be available from the sounds tab. Seeing the sound card as the input device is more of what I would expect in a general properties dialog rather than the bar.
I found this tidbit on a support site that might be of help:
[Windows 2000
Click on the "Start" button in the lower left corner of your monitor. From the menu select "Settings" and then "Control Panel." Click on the icon for "Sounds and Multimedia." In this window select the "Audio" tab. Ensure your sound card or built in sound hardware is selected in the "Sound Recording Preferred device" drop down window. If your hardware is not listed, please consult the documentation that came with it.
Once the correct device is selected, click on "Volume" under "Sound Recording Preferred device." Enable the Microphone as the default input by clicking in its check box. Move the microphone's fader to a position three-quarters to the top. Close this window and click OK on the "Sounds and Multimedia Properties" window.]
I hope this is a bit more helpful, but my knowledge of W2K is pretty limited. If this doesnt do it, there are a lot of ppl on this board who will know your OS better, I am sure, as well as a lot more about the dot commands, which still may be the culprit here. I did forget to ask, do you have the ability to still use your mic in other apps?
Blackwulf