The hardware in/out panel is where you can manage the settings for any physical gear that is connected to Sensory Percussion. This includes sensors, MIDI devices, microphones, speakers, headphones, guitars, synths, etc. Unlike the virtual inputs panel, this is a global panel, meaning your hardware stays the same regardless of what set you have open.
Hardware inputs and outputs are both added by clicking the '+' button in the respective panel.
The most common hardware setup is Sensor Inputs --> Analog Outputs, but you can create any combination of input/output types.
You can always delete a hardware input/output by selecting it and hitting delete.