Here is a current “Print Screen” image that I just did on my laptop. Since schools are closed, I have the day off and did some multi-track recording sessions with the brand new fresh installed version of Audacity 2.0.6 on my Win 7 Lenovo laptop…
Here, I am recording a version of the old standard fiddle tune, “St. Anne’s Reel”.
Track 1: Basic drum track, created by my Yamaha DGX-505 full size 88-key keyboard (i.e. using the built in percussion, in a sort of “two step” Irish Jig type of beat).
Track 2; Rhythm guitar (a very clean, Fender Stratocaster, with the amp mic’d)
Track 3: Bass guitar (my Samick 4 string bass, also with the amp mic’d)
Track 4: Mandolin rhythm track, played acoustically into a mic, while wearing headphones, while tracks 1,2,3 are all playing.
As you can see, all the tracks recorded perfectly fine, no volume loss, no cut in/cut out, no choppyness at all. Everything is in sync and perfectly fine. I guess all I had to do was update the audio drivers from Lenovo (who uses Conexant for the maker/audio company), and reinstall Audacity.
I too am curious as to the unchecking of the checkbox sections under the “advanced” properties for the recording/microphone section of the Conexant devices. What the heck, everything works… If it ain’t broke, don’t fix it, as the saying goes… 
Edit: This whole thing is a backing track for me… I will be singing the main lead vocals of the song, and play my violin/fiddle for the solo sections.