Dell Inspiron E1505 Sigmatel Audio. Cannot record from line in

I am not able to record what I hear on my new dell laptop which is running on Windows XP. The SigmaTel audio driver is still there which has some options. I dont know why this pc is not able to record the sound being player. I have DivX player to play the .avi file and GoldWave to record the sound. I got no issues recording the sound on my desktop PC, using the same file and software so I can fell strong that the issue is with the Dell itself. I even tried to upgraded the audio drivers but to no avail? Can anyone please help? Thanks.

You dont have to record the sound being played by a recorder, instead of that in WMP you have to click file and then in the drop down menu, save as, and then save to desired location. Incase you are trying to record from the sound hardware on the pc, right click the speaker by the clock, volume control, properties, choose record from playback and then in the record menu check the box for line-in or microphone.

Thank You! Great reply! Clear and consise.