Windows 7...why?
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Go to Device Manager and look under "sound, video, and game controllers".
You should see your sound card listed.
Or you could go to your motherboard manufacturer's web site.
Or you could go to the system builder's web site and look for other drivers if you bought the PC from Dell or HP or somebody like that.
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The truth is that a lack of stereo mix is quite common on Windows 7.
It was not so common on Vista and much less common on XP.
I leave it to you to imagine why the powers that be might want to make it difficult for you to record sound on a PC.
Hmmm....................I wonder why they would do that?
Hmmmmmmmmmmmmmmmmmmmmmm.....................
Get a separate sound card.
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And BTW thank you all for persisting with your suggestions. W7 is an improvement in many ways and yes the designers "listened" to the the median in the bell-curve sample of users. But there are always us outliers who have specific requirements of our computing work that often get dropped out in the "improvements" of the upgrades.