"If you have a Stereo Mix option, you can use that along with Audacity (a free audio editor) to record anything that is coming through your speakers. There are also some pay solutions.
Many of the modern manufacturers of audio cards have removed that option specifically because you are able to record streaming music.
(this is as simple as they come) :: Plug the mic in, open sound recorder in windows (talking XP here, there should be something in 7 and Vista as well) - it's in Accessories/Entertainment, and click Record."
