No mic input in Cubase SX3 after KX install

bagthetusk

First time I have posted on one of these so apologies if I am not meeting protocol. I have just installed KX drivers on my PC (WINXP with Soundblaster Live 1024) and followed the DSP set up instructions given by a helpful user at http://au.geocities.com/kxcubase/ (see screenshot). I can hear microphone input and .wav files on the PC speakers. In Cubase SX3 I can also hear (monitor) my analogue input (acoustic guitar with mic) and hear imported (.wav) loops.

Frustratingly, though, I can't get any mic input levels in Cubase (via the Cubase input monitor), no vocals or acoustic guitar tracks record, and I fail the sound hardware test (in Control panel "sounds and audio devices") even though I can hear the mic input through the PC speakers.

Anyone come across this before? I would be massively grateful for any solutions.