Window 7 - 003 rack - Pro tools 8.0.4 LE - Issues with getting signals

[Waveform1.0]

I bought a 003 rack - i installed the beta drivers and got it going after countless hours of troubleshooting.

I get the e-mail about official drivers for win 7. Reformat comp. Install everything exactly the way it says to. Load up pro-tools 8.0.4. Seems to be running smoother than ever first try! Happy as can be that something is working smoothly for the first time in 5 months.

I have different problems now. I load a blank session. Plug a 1/4 inch into DI 1and the other end into my guitar. Input Analog 1- Output Analog 1-2 Stereo.
I've used pro tools and have gotten to record vocal and guitar in the past.. Even on the beta drivers at times it seems i could find the right configuration of front/back - I/O settings to get a signal.
However, i cannot get any sort of signal or "Green bar" to show up, other than when i hit the "Mic/DI' button on the front." When i plus the 1/4 inch chord into the 5-8 jacks, i can see myself hitting strings and getting signal, but nothing in the headphones and the signal is not strong at all. in fact its very weak and is not conrtolled by the slider or knob on the front of the machine. After all i've been through, i am worried that it's been a possible Hardware issue all along.
Is there anyway to test the jacks in the back of my 003 rack? I've spent loads of hours navigating through forums/videos.
All i'm trying to do is plug in my guitar and microphone to play acoustic tunes.. Never was this difficult. I think part of my problem is not knowing when to have Mic/DI button lit. When to use phantom power. What exactly I/O settings i should use. Though navigating through everyones individual problems hasn't proved fruitful so far.

[Waveform1.0]

I should mention that my comp is an asus g71 windows 7 x 64 bit. Its brand new.

[GtrDude]

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