I found a simple workaround: use FRAPS (http://www.fraps.com). Under "sound capture settings" there's a checkbox for "Record Win7 sound" which allows you to record what you hear, whether or not you have stereo mix enabled. (It picks up ANY audio, not just the audio from the active window.) The FRAPS changelog (http://www.fraps.com/news.php) says this (scroll down to the entry for 2.9.8):
This is an unsatisfactory workaround for (at least) two reasons: (1) FRAPS isn't free, and (2) you have to record video along with audio. (This can be annoying, but freeware programs like AoA Audio Extractor http://www.aoamedia.com/audioextractor.htm can split video/audio.) Still, I thought it might be of use to someone. Does anyone know a freeware program that uses this recording mechanism?Vista also includes a rewritten audio subsystem. Fraps can take advantage of this and directly record a sound stream from the machine without requiring any support from the soundcard driver. This allows you to capture ingame audio even if you are using a USB headset or other audio device which does not normally support a "Stereo Mix" or "What U Hear" recording input.



