Solved the problem in windows vista x86 home premium, service pack 1:
Get a good soundcard with at least 6 channels, get a wire with a 3,5 mm
jack in both ends, get a jack splitter and you're ready to go.
Right click on the volume icon and select recording devices. Here right
click on the empty white space and enable show hidden and disabled
devices. In here there should be something called "stereo mix" enable
this.
Now hardwire your line in plug and the plug for your speakers. Remember
the jack splitter? Put this in the plug for the speakers so you can have
both the wire to your speakers and to the line in plug plugged in at the
same time.
In Audacity you now have to select the right device to record with.
Open edit, and select preferences. Then under audio I/O select the
microsoft sound mapper - output as the output source and select the
stereo mix as the input source.
This solved the problem for me. Ergo service pack 1 can STILL be
hardwired no matter what others say.
Email me if you need help:
im_the_666@hotmail.com
/Djebz
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Djebz