HELP! Nothing is being recorded!

Yes, that’s a “normal” headset (not USB).
Pink should be microphone and green headphones.

Good, that’s progress.

Most likely there to begin with.

Yes that helps - you have a Realtek HD sound card. These are usually built into the main computer circuit board (on-board sound). The recording quality is usually pretty poor, especially recording from a microphone, but it may be good enough depending on what you want.

Have a look at this post - it may give you some clues: multi-track recording guitar