Sorry for the 2-day delay, been in and out of town first few days of the new year since it's holiday time (visit family).
Anyway, the ATI AIW 128 PRO card uses a Theatre chipset to capture video. Those are very good chips. However, the card is a bit old, so ATI has discontinued support on it, in terms of drivers and software. But all is not lost. ATI MMC 7.2 is about 4 years old now. ATI MMC 8.7 is one of the newer ones, and can be installed with a few simple hacks, as outlined on a guide on this forum. It is a HUGE performance and quality increase over the version 7 relic.
This is the guide for hacking up to ATI MMC 8.7:
As far as the lack of sound recording, the two most common culprits are having the wires plugged in incorrectly, and having ATI MMC on the wrong audio input channel.
If you are using the coax for source, that wire is simple to plug in. If this is composite with rca audio (the yellow and red audio cables), please be sure they are plugged into the purple breakout box. The purple box feeds audio and video to the ATI card, and the audio then routes through the soundcard. The ATI card must be connected to the soundcard either internally or externally. New boxed ATI AIW cards would have come with both wires. It connects the AUX channel on the soundcard and ATI card, using the little 3-pin audio cable. The external method is using the ATI output wire bundle (black wires) and plugging the audio mini (stereo/headphone cable) into the soundcard INPUT (not MIC).
In ATI MMC, you want to click on the CHECKMARK and on the DISPLAY tab, go to the INITIALIZATION WIZARD and follow the on-screen instructions. Be sure the computer speakers are turned up and that the WINDOWS volume is not too low (or muted), so that you can hear the audio from your input VCR or coax signal. See image:
Cheap audio cards are usually a concern for AUDIO SYNC problems, not so much refusing to cooperate. I doubt your card is being ignored. As long as WINDOWS sees it, you should be okay in this regard.
Let me know how it goes.