Alright, I finally got the thing working. For some reason, I was not able to update Leopard from 10.5.3 to 10.5.4. So, I reinstalled Mac OSX Leopard. I deleted pretty much everything on my Mac and started from scratch. I obviosly backed up everything that I needed. I was then able to update to 10.5.4. I am now able to change the Audio to record in the Workspace. In addition, I have more space on the system hard drive because I got rid of a lot of old files and software programs that I never use. Thanks for all the help