Recording issue - "Show Disabled Devices" does not work

I am having the same problem. grrr. my pc did not have this prob from factory status. it is almost as if I have some sort of incompatibility issue. I use modplug tracker for music composition. my program was running fine for a long time. I have not downloaded anything of significance recently. One day I went to save a piece I was working on and I lost the piece. Soon after thatIi began having issues where I could not hear out of my headsets. Then my pc was set for headset and still played from the pc speakers. I finally got it to only play from the headsets, however, now it won't record 'what I hear'.

I am unable to record any sound samples or videos or music from the net. it is only recognizing internal or external mic as a source for pick-up. I came to the same conclusion as Alkie Q. I used a splitter in the headset input and jumped it to the mic so I can hear what I am recording.

I am not going to give up on fixing this issue, since I know it wasn't an issue I had from my new laptop. I am wondering if an update has changed a setting, or my programs aren't seeing eye-to-eye. I will post back if/when I find the answer.