initial audio device box set up problem

i have recently upgraded my cubase system to artist 8 and have run into a snag at the initial setup stage. i have installed the the software and activated the vst audio system but when i move to the next step, after adding a bus, and try to set up inputs the audio device box is telling me that there is no audio device connected. i bring down the pop up menu in audio devices and try to change this to the generic low latency driver that comes with cubase but it doesn’t register it continues to say ‘audio device not connected’. the third step of the outputs bus works fine - the audio device box shows the generic low latency driver as being connected and with that the speakers that i am using. i have followed the instructions a few times and keep running into the same problemo. it’s a simple initial setup problem that i have no answer for. my last cubase system never had this problem. ta. lc