Mic won't appear in sound input

[PEN10k]

Hi guys,
I have a headset with microphone, and connect them to a mic/sound converter which goes in to my macbook.
Sound is fine, but when I want to choose the microphone under system preferences and sound input, it still only shows the built-in mic, and not the mic from the input? Can anyone help?
Thanks


FIXED

 

[dyt1983]

edit: To remove personally identifying information not relevant to the thread.