One of the most common complaints Windows 7 customers have (myself included), is that on a lot of new computers, there is no stereo mix option. Stereo mix allows you to record sound as if it came right from the sound card. This can be useful for running music or media from other sources through your live stream, on a chat program, or using soundboards for prank calls. Fortunately, there is a program called Virtual Audio cable that will allow us to do the equivalent of a stereo mix, on any computer.
Virtual Audio Cable can be downloaded from Here. Once you have it downloaded, this is a basic overview of the steps you need to follow. As usual, of course, the video below is more in depth and visual.
1. Download and Run VAC, open “Control Panel” app as Administrator
2. Sec Channels to 2
3. Open 3 Audio Repeater (MME)
4. Set 1st audio repeater: Mic as in, Line 2 as out
5. Set 2nd Audio Repeater: Line 1 in, Line 2 out
6. Set 3rd Audio Repeater: Line 1 in, Headphones(or speakers) out
7. Run All Three
8. Go to windows sound properties and set “Playback” Source as “Line 1″
9. “Set Recording” as “Line 2″
When done, just close the three Audio repeaters and all should be back to normal. I suggest two things: Making icons for VAC, and bookmarking this tutorial, because the audio repeater settings do not stay after closing the window.