usb audio line in

I have just purchased a Terretec USB Phono Preamp studio.
I have installed it and its software according to
instructions.
The USB device installs with the built in microsoft driver.
It is listed as a recording device and can have it's level
set.
The USB does not appear listed as a playback device.
As such it has no volume control or mute button associated
to it.

My problem is that in Roxio 5 Sound Editor when I click
the "mic" I can see Level activity but no sound from
speakers.

I can click to record and all records ok (sound trace
working) but no sound from speakers
When I stop and play back the track it plays fine.
My problem is if I cannot here the recording I cannot tell
if there are any problems with the sound.
I am having no joy with tech support at Terratec. They say
if it run's there software OK which it does (while
recording you can here sound with there software) Then
they do not want to know.

I have this running on a Dell laptop with w2k sp4 I have
also tried it on a new dell 8300 with xp pro sp1
Both give the same result.
I have checked all sound input and output levels in mixers
both windows and sound card(xp) all set correct where
visible.

Can anyone help?
..