If you want to select the system sound input or output device you can use System Preferences. But if you have the volume control menu icon you can do it there too. The key in Lion is to hold down option when you click it. Then you can select input and output, and also get quick access to the sound preferences.
Select Sound Input and Output Device
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Thanks!!! That will save be a lot of time since I have a TV and EyeTV hooked up to my Mac Mini. I am always switching back and forth.