Many of you may have been as frustrated as myself by Micrsoft bowing to the RIAA
and pressuring the soundcard manufacturers to remove the "What You Hear" feature
from their drivers. This supposedly prevents you from recording web radio and
other sound card audio.
The short term workaround has been to loop the line out audio back around into
the line in jack. While this works, it's a kludge.
The good news is that Version 7 of Total Recorder (just released) now comes with
a true kernal mode driver that restores the capability to do direct recordings.