Kim, I'd imagine you have another sound device in adition to the modem one!

I see your sound recorder works - this presumably means you can play audio back too???

Audio as in .wav and MIDI are different beasts. You will need both working to use everything in Cakewalk.

One possibility that has occured to me is that maybe you have the wrong trak settings in Cakewalk for what you are trying to do, e.g. a MIDI track wouldn't take any notice of mic input.