Plug the headphones into the front of the M-Track. Scratch the microphone grill. Do you hear it and do you get the sound lights bouncing on the front? Get that sorted first. Nobody’s going anywhere until the M-Track is working.
Win7 has little sound meters in their Windows Control Panel for sound. I’m hoping Win8 does, too. Open the control panel, select the M-Track and scratch the microphone again. Do the Windows sound meters jump?
Launch Audacity and make sure the M-Track is selected in stereo. Stereo/Mono setting can prevent a recording.
Right-Click on the top Audacity sound meters > Start Monitoring. Scratch the microphone. Do you get the bouncing light meters?