The key to recording sound off the sound card with Audacity is to use the i/p set as 'Stereo Mix.'

If you simply click on record without first choosing 'Stereo Mix' as the i/p you will likely be recording from the mic. setting. Not a good idea.

Firstly remove all versions of Audacity, &/or install the latest v2.0.

Then follow the various links from the download site to also install the Lame MP3 decoder.

Also download and install the various Nyquist add-ons for later processing of recordings.

If you have XP then 'Stereo Mix' as the i/p will most likely already be configured by default.

If you have Vista or Win 7 then you need to configure 'Stereo Mix' first. Google search 'configuring stereo mix windows 7' or something like that. Its quite easy. Or see:

http://www.howtogeek.com/howto/39532/how-to-enable-stereo-mix-in-windows-7-to-record-audio/

Then there is another setting you need to experiment with - 'Software PlayThrough' (or something like that). Go to Edit / Preferences / Recording - try this option checked or unchecked.

When recording with Audacity be aware that the slider settings for the i/p and o/p will both affect the recording level. So adjust both so that the waveform gets up to about 95% but not more, and avoid clipping over 100%. Or record at a lower level, say 60% and then amplify the recording using a Nyquist add-on afterwards.

I have to add that in order to record webcasts or streaming audio I prefer to try and track down the raw URL then use Orbit to download the sound file. An Orbit download is restartable.

To get the raw URL I use StreamTransport then Orbit. Or there are other sniffer programmes available.

To download from YouTube I use one of the many apps. such as YouTube Downloader. For the Beeb Radio on iPLayer you can use RadioDownloader or for Beeb radio and t.v. progs. there is get_iplayer.

If the downloaded file is at too low a level you can open it into Audacity and amplify it.

Hope all this helps.