The Config->System->Audio devices menu let you select input and output audio device. The first one is always the default device of windows. After the default selection there is a list of installed sound cards in the system. Pressing the Show Details button opens a window, which lists the selected device capabilities such as the support for different formats.
Some sound cards do not support duplex operation, where the input and output are active at the same time. It is also possible that the sound card hardware supports duplex operation, but Windows drivers do not. Some old 16 bit Sound Blaster card drivers have that kind of problems. If this is the case, update new drivers from the manufacturer’s web page.