you can also do it using windows movie maker.
start/program/window smovie maker.
look near the bottom left for the microphone icon "narrate timeline" clicky..
select "audio device" as your primary soundcard
select "audio input source" as stereo mix. (it will now record what is playing on the soundcard)....adjust the input level slider so it isnt maxed out all the time, and click "start narration".
when done, click "stop narration, and you will get prompted to save the resulting file as a wma.
so easy.
*if this tip saved you some money/time/enriched your life, consider donating R5 to charity*