Cubase 5 problem

Hello, i saw from a friend that he uses cubase 5 (+ guitar rig 5) to record his guitar and add effects (without an audio interface) and it sounds pretty good in my opinion.
I have tried the same thing, got cubase 5 and guitar rig 5, installed ASIO4ALL, selected it from VST Audio System menu, but there seems to be input problem, i dont get any soundwaves nor anything. pictures are in the attachments
The only inputs i can select are : in at front panel 1 and 2 and not conected, thats all
Any help would be appreciated :unamused: