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I once had a soundblaster (7 years ago) that I could record anything that was going through speakers without a mic with their software. Its setting was record what you hear. Is there any program like that now? Everything I find needs a mic?
You are looking for audio capture software. I use Total Recorder for little stuff I want audio from(you aren't getting top shelf quality), I use it because a friend had a license he didn't use anymore.
OP, I had this issue with vista and magically got it working... forgot how though. I've NEVER had the stereo mix button/option via sound options. I believe that I got it working through audacity