diff -Nur audacity-src-1.3.7-orig/src/prefs/AudioIOPrefs.cpp audacity-src-1.3.7/src/prefs/AudioIOPrefs.cpp
--- audacity-src-1.3.7-orig/src/prefs/AudioIOPrefs.cpp	2009-01-27 21:50:58.000000000 +0100
+++ audacity-src-1.3.7/src/prefs/AudioIOPrefs.cpp	2009-03-02 17:25:17.000000000 +0100
@@ -71,6 +71,25 @@
    wxString Name;
    wxString Label;
 
+   mDefaultPlayDeviceName = gPrefs->Read(wxT("/AudioIO/PlaybackDevice"), wxT(""));
+   int playDeviceNum = -1;  // use device name from gPrefs
+   if ( mDefaultPlayDeviceName == wxT("") ) {
+#if USE_PORTAUDIO_V19
+      playDeviceNum = Pa_GetDefaultOutputDevice();
+#else
+      playDeviceNum = Pa_GetDefaultOutputDeviceID();
+#endif
+   }
+   mDefaultRecDeviceName = gPrefs->Read(wxT("/AudioIO/RecordingDevice"), wxT(""));
+   int recDeviceNum = -1;  // use device name from gPrefs
+   if ( mDefaultRecDeviceName == wxT("") ) {
+#if USE_PORTAUDIO_V19
+      recDeviceNum = Pa_GetDefaultInputDevice();
+#else
+      recDeviceNum = Pa_GetDefaultInputDeviceID();
+#endif
+   }
+
 #if USE_PORTAUDIO_V19
    int nDevices = Pa_GetDeviceCount();
 #else
@@ -85,10 +104,16 @@
       if (info->maxOutputChannels > 0) {
          mmPlayNames.Add( Name );
          mmPlayLabels.Add( Label );
+         if ( playDeviceNum == j ) {
+            mDefaultPlayDeviceName = Name;
+         }
       }
       if (info->maxInputChannels > 0) {
          mmRecordNames.Add( Name );
          mmRecordLabels.Add( Label );
+         if ( recDeviceNum == j ) {
+            mDefaultRecDeviceName = Name;
+         }
 //         if (info->maxInputChannels > numChannels)
 //            numChannels = info->maxInputChannels;
       }
@@ -121,7 +146,7 @@
       S.StartMultiColumn(2, wxEXPAND);
       S.SetStretchyCol(1);
       mPlay = S.TieChoice( _("Device") + wxString(wxT(":")), wxT("PlaybackDevice"), 
-         wxT(""), mmPlayNames, mmPlayLabels );
+         mDefaultPlayDeviceName, mmPlayNames, mmPlayLabels );
 
       S.AddPrompt( _("Using:") );
       wxString ver = _("Portaudio v");
@@ -139,7 +164,7 @@
       S.StartMultiColumn(2, wxEXPAND);
       S.SetStretchyCol(1);
       mRec = S.TieChoice( _("Device") + wxString(wxT(":")), wxT("RecordingDevice"), 
-         wxT(""), mmRecordNames, mmRecordLabels );
+         mDefaultRecDeviceName, mmRecordNames, mmRecordLabels );
       S.TieChoice( _("Channels") + wxString(wxT(":")), wxT("RecordChannels"), 
          2, mmChannelNames, mmChannelLabels );
       S.EndMultiColumn();
diff -Nur audacity-src-1.3.7-orig/src/prefs/AudioIOPrefs.h audacity-src-1.3.7/src/prefs/AudioIOPrefs.h
--- audacity-src-1.3.7-orig/src/prefs/AudioIOPrefs.h	2009-01-27 21:50:58.000000000 +0100
+++ audacity-src-1.3.7/src/prefs/AudioIOPrefs.h	2009-03-02 17:25:16.000000000 +0100
@@ -48,6 +48,9 @@
 
    wxChoice *mPlay;
    wxChoice *mRec;
+
+   wxString mDefaultPlayDeviceName;
+   wxString mDefaultRecDeviceName;
 };
 
 #endif