Thanks! The secret was right-clicking to enable "Stereo Mix" in the Control Panel--Sound window. I wonder why this was disabled by default?
Install the latest Audacity. Just above the recording panel in the first drop down list select "Windows WASAP". In the second drop down list select "Digital Audio Interface (SB Audigy)". In the third drop down list select "Speakers (SB Audigy) (loopback)". With these settings you should be able to record what you hear.
I my previous post I should have said the instructions are for an Audigy sound card.
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