RedHat 9.0 is right before they split it off as Fedora Core, isn't it? If I were you, I'd upgrade to the latest version of Fedora Core - I think it's 4. You can get it from
fedora.redhat.com.
Anyways, if you're using KDE (don't know a thing about Gnome) then in the KDE Control Center there's a sound setup tool. In order to record and play sound simultaneously you'll need to enable something called "full duplex".