Audacity Forum

steve wrote:I see no problem there.
Have you turned on "Software Playthrough"? It should be off (not selected). Please check - near the bottom of the Transport menu.

It Was checked so I unchecked it. Also checked was "Overdub". Should I uncheck that one too?

Usually "Overdub" should be checked and "Software Playthrough" unchecked.
"Overdub" allows you to hear other tracks while recording a new one.
"Software Playthrough" routes the input audio back out through the sound card (after a short delay due to buffering and software latency). As you are recording what is playing through the sound card, enabling "Software Playthrough" will cause a bad echo problem.

Bingo!
Once I'd unchecked Software Playthrough I had no trouble recording. The volume is fine and the sound is crystal clear. This use of the internal line is so much better than using the built-in mike.
Thanks a million!