Windows not recognizing Line 1/2 as separate inputs

So, I’m new to the Guitar to USB world.
I’ve done studio style recording for years, with a board & PC being the output device via analog, but this is the first time I’ve tried any USB device.

I was in my local Long & McQuade talking to their home studio guy, quite knowledgeable. Being a noob, and on a budget, he suggested that the Steinberg CI-1 would be perfect for what I’m wanting to do (Bass & maybe vocals) into my PC. So, for $99.99 & a return policy I figured, “what the heck? I’ll try it.” It was easy to install & Sequel’s rather simple to use, perfect for a novice like me.

Here’s where my problem starts, and I’m hoping someone has some solution for me.

In order to hear what’s playing in Sequel SE when the CI-1 is selected as the audio device I have to plug my headphones into the CI-1, instead of my PC. I’m a gamer and only have 1 headset. The audio dude told me that the CI-1 could function as my main sound card. No problem, just set the default audio device for playback & recording to the CI-1 & then plug my headset into the phones and Line 2 ports. Now, when I’m using Sequel SE, it’s great. Sequel picks up on both inputs from the CI-1 and can split them. Windows? Not so smart. -_- Windows only sees it as 1 device and I can’t find a way to make it recognize both inputs as their own source.

I also notice that when listening to the Line input in Windows (by turning on the “Listen to this device” option in the Recording device list, there’s a 1/2 second delay. Is there any way to avoid this, too?