For instruction on setting preferences, "check drvice block and select "micrrophone etc…
Device box is empty when I perform this step.
Make sure you are using Audacity 2.0.0 (check your version at Help > About Audacity).
If this is still a problem, please give more details. What version of WIndows? If it is Windows Vista or 7, look at these instructions to enable sound inputs and outputs in Windows.
http://wiki.audacityteam.org/wiki/Mixer_Toolbar_Issues#vistacp .
If you have no devices listed in the Windows Control Panel for sound, go to Device Manager, expand “Sound, Video and Game Controllers”, then right-click over your audio device and choose “Enable”.
Gale