My version of the software is 5.05B I tried daily program and wake/sleep

1) daily didn't switch-on so I waited for
2) wake. Which it did. I checked the sleep time and had forgotten to set it so I set it during record and it switched off at the new set time.
3) I then switched the radio on and left it to find the new "daily" settings and sure enough it recorded at the right time and stopped but left the radio blaring (as before recording).
4) this was with the full radio window but it does the the same in the small one. Dunno about "blaring & residing in the taskbar" mode. You can try that when you get to the record stage. It concatenates the audio footage which can only be reset by exiting the prog.
5) The splash screen (I never disabled it on the working PC) does say to mute the volume display when recording via other applications so I switched it off on the D-Link app - it's the little doovery in the top RH corner of the volume display (bar or oscilloscope).
6) it does say in the manual that the program has to be loaded for the timers to work.
7) I failed to get the mp3 working but saw a fleeting reference to Winlama. I did not see the right mp3 windows and there is a lame.exe on the CD - maybe Winlama.
8) you try these settings (only) first and any URL's below.
9) finally I came to the conclusion that the only way to store the audio footage is to "Save As" (or save and risk overwriting). It ain't automatic.
10) Let us know how you got on. Join as a member and PM me here.

Dr. Ebony Huang ysh@pidc.gov.tw has a website (below)

there may be information on : www.fmbox.com.tw

Winlama seems to be related to the MP3 encoding
http://www.ill-lusion.com/winlama

From manual.doc
(E).        Why can't I use my DSB-R100's record and play functions?
ANS:        
        A.        Other applications software may be currently using the record or play functions. It is then impossible for the sound card to run the record unit again.
        B.        Your computer doesn't have a sound card.
        C.        Your computer has a sound card, but the sound card driver hasn't been installed correctly.