Kim C, do you have an actual Creative Soundblaster card? Or is it a clone or a competitor?

Are you getting nothing at all recorded in Music Creator?

You might look at the Mixer Panel which shows the status of all the devices. I wonder (I don't have Music Creator), but in the Creative Recorder which came with my SoundBlaster, it can set the input for the Recorder to be from the Microphone, or the Line In, or the soundcard's output itself.