I will be showing you how to save the audio that is streaming on your computer for example online live radio. This is useful for things that you just heard while listening to the radio or maybe a snippet from a youtube video.
1. On Windows Vista / Windows 7, the quickest way to access the mixer is to right-click over the speaker icon in the System Tray > Recording Devices. Or you can click Start > Control Panel > Sound.
2. Right-click anywhere inside the Recording tab and choose “Show disabled devices” then right-click again and check “Show Disconnected Devices”
3. Right-click specifically over the input device you want to record with (for example, line-in or “Stereo Mix”), and if visible, choose “Enable”
Right-click once again over the input device you want to record with, and choose “Set as Default Device”
4. Next, inside of Audacity, select recording inputs at Edit > Preferences.
5. In Devices tab, Click the “Recording Device” drop-down list and then Select the “Stereo Mix” option. This will enable you to start recording whatever you are hearing play on your computer speakers.
Hope someone finds this useful and an addition to their documentary!