Status of troubleshooting - appears to be an Adobe issue!
Too often using Audition 3.0.1 one gets the "Adobe Default Windows Sound Driver" error and message "The audio input is not activated. Recording audio is not possible. Please check your input configuration." This is an indication of an Audition issue where the application tries to force a default to Adobe?s DirectSound ASIO wrapper ?Audition 3.0 Windows Sound.? If you click Edit>Hardware Settings (this can crash the program) and select Audition 3.0 Windows Sound, you see that the default input selections are grayed out for both Edit and Multi-track views. The work-around is: 1) select default inputs so they?re not grayed out, then 2) select your desired driver, either the much better wrapper ASIO4all or your soundcard?s own driver. Audition 3.0.1 crashes entering Edit>Hardware Settings when it is ?driver-confused.?
I observe that, when Edit>Hardware Settings works, you see a ?historic? list of drivers even if not currently available (when the device is off). This condition might happen because Audition tries to use its last successful driver choice, available or not. Confused, it persists in reverting to its own Windows Sound until you perform the workaround above. More and more, users have multiple connected devices ? my current DAW build has a MOTU device via FireWire plus an RME device via USB ? where this issue can be so bad that Audition can not even start (showing ?Running? in Task Manager but actually locked-up, consuming 50% of CPU cycles until you kill not only the application but also the process). Other software such as Audio Mulch on the same PC (XP Pro sp3) do not suffer any of this, showing all running devices? ASIO channels available for selection anytime. Adobe needs to fix this issue.