[nst7]

That is correct. On the track you're recording to, select "mic". This ensures that your physical mic input will be recorded to that track. In the Eleven Rack GUI window, in the upper left corner, select "mic" also. This ensures that the mic signal will pass through the effects. If something other than Mic was selected, you would still be recording a dry mic signal to the track (because you have enabled that input for it), but it would not pass through the effects section of the 11R.

Only one thing at a time can go through the effects section. It's a good feature that these can be selected separately. For example, if you wanted to record your guitar playing and singing at the same time, you would create 2 tracks. One would be your vocals, set to the mic input, which would record straight to the track dry. The other would be the guitar input, and you would also select that to be the rig input, so it goes through the effects.