I have also used Audacity in Windows 7 Pro, without this problem (my interface was a Mackie Onyx Blackjack).
Don't know whether it is relevant, but under Control Panel > (Hardware and Sound) > Sound, the interface is shown as the line input (not mic) under the 'Recording' tab. After clicking properties, level can be adjusted under the 'Level' tab. Under the 'Advanced' tab both boxes are checked in 'Exclusive Mode'.
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