Sorry but I don't have Video Studio 7, but in Video Studio 8 you can check the sound settings by
1. Take the 'File' menu
2. Select 'Project Properties'
3. Click the 'Edit' button on the dialogue box
4. Click the 'Compression' tab
5. The audio properties can be changed in the bottom part of the dialogue box.
6. May also be worth checking that you are using the correct capture plug in from the 'Tools' menu.
As I say, I don't know if this is the exact sequence in version 7. In earlier versions of Video Studio such commands were under the Global Perferences button.
However I hope the foregoing is of some use
COMPAQ something or other with 500Gb Boot Disk, 1Tb external Firewire Disk, 4Gb Memory and a super duper sound card, 19" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
Sony Vegas Studio editions to v11
Remember, there is always more to learn than there is to teach.