first have you ruled out that the problem is software related or hardware related. Try audacity free sound recording program, and see if you have any luck there. If you do then read the ableton manual. If you dont, is there any software that comes with it like a mixer, make sure nothing is muted. Also check out the windows sound mixer if youre using windows and go into recording make sure nothing is muted. probably did not help you

Well i did what you said and downloaded audacity and gave it a go. There was no luck. It installed fine and it found the Audio1 as an audio input. I am just unsure on the correct settings you must have. I tried out various ways but i had the input audio as the Audio1 and then the output as my sound card on the computer. From the Audio 1 controller it is then plugged into my mixer in the booth ports. There are also return and send ports on the mixer (pioneer 800) what are these for?

Basically i dont know if it is a hardware or software related problem because everything has been installed correctly and is found by the computer but also the hardware seems to be the same, so i cant really narrow it down. I am guessing it is a settings problem in the software.

Can anyone tell me how they have their recording devices set up?

cheers

In the control panel, for sounds and audio devices, under audio, is the interface selected or is it still set to the onboard sound for playback and recording?

And as far as set up goes, I have the audio out from the mixer going 2 places... one (booth) to an eq (RCA to XLR), then to an amp, then to loudspeakers. The second (main) out is like yours... audio out (RCA to 1/4") going to audio in on the interface, and powered monitors hooked up to the interface.