I was trying to record my guitar on Input 1 on the front panel which was labelled Mic/Line 1. When I play my guitar I noticed on the AXR4T display panel that the signal is on Mic and not Line. So my question is whether my setup is correct or there is a settings somewhere for me to switch Input 1 from Mic to Line mode.
The output from most guitars is not line level so the mic pre is needed to raise the gain. You will also need to select HI-Z (usually). Only input 1 and 2 have the HI-Z mode on the AXR as they are meant for recording guitars and basses directly. For input 3 and 4 you will need an external DI box.