There are a couple of reasons why you may see a message saying that FlashBack cannot record from the selected sound source.
- Another app (such as Skype) has being granted exclusive control of the mic by Windows. Try disabling the Exclusive Mode settings in the devices properties or disable the exclusive mode option within any apps that are running and have such an option.
- The status of the device has changed in Windows since FlashBack was started (it only checks device status on launch) and it can no longer initialise it. Something like unplugging and then plugging it back in again can do this. Restarting FlashBack will refresh the device status in cases like this.