Make sure you go into the mixer on the computer, right click the speaker icon in the tray by the clock and select Recording Devices and then check that the Line In is set to the default, generally the Mic input is set to default.
If your computer soundcard truly has Line In it would be a Blue jack, the Mic is the Pink/Red jack. Try moving the audio cable from Line to Mic just to see if you get audio if you can't get the mixer to cooperate as a troubleshooting step.
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