Windows 7: Audio Mid Recorder audio sounds thin and fraily

I am using the trial version of Audio Mid Recorder and when i record anything from like lets say, youtube or even from a radio station it comes out sounding very thin, as if it was recorded from a pair of head phones. All audio devices seem to be in working order.




ok, I just found out why it's sounding thin is because it was recording through the mic head set. Now I disabled the headset but still on the recorder the source device on the drop down option for recording device it is not listed.

I thought that this was disable to plug the analog hole, so that people could not record what they are hearing from their sound card...basically going around copy protection.

Analog hole - Wikipedia, the free encyclopedia

I think they started it with Vista, I could be wrong.

Here is some more info on it:
Ask the Doctor: Pluggin' the Analog Hole | Maximum PC