HI Yardbird,
Welcome to TechIMO!
Have you verified that you are getting a signal to the card from the front panel? I suggest you check your connections first to ensure they are tight, and correctly plugged into the card.
Make sure the front panel is functional Test the front panel with a pair of headphones in the headphone jack, do you hear anything?
Have you Set the recording source to the correct port??
Click the Start/Programs/Creative/Audigy2 and click on Surround Mixer. Locate the Line-in-2/Mic-in2(or whichever port you are trying to use) volume control. To test passthrough from the Line-In2, unmute it( you did make sure your inputs were unmuted, right?), then start your external player. You should hear sound. Mute the Line-In2 to prevent feedback.
Have you enabled playback volume and recording volume settings?
If none of these work try going to Creative labs' site(here is their knowledgebase answers for "audigy2 cant record front panel" :
http://dmzweb3.europe.creative.com/S...530,K=85,Sxi=8