I have a Dell desktop ( an All in One) with Win 8. Not sure if this is a Dell or an Audacity ( ver 2.0.5) issue. I have been using Audacity for years, but on my Dell desktop, it just will not record the audio on the PC- only my mic- either my built-in or my headset, but not thru the PC. It did work on my old desktop which had Win 8, but I think that one had an older version of Audacity ( I installed it in Dec 2012 on that machine)
I have it on my Win 7 laptop and it works perfectly. I think I have tried just about every combination with settings- both on Audacity & my PC, but no luck.
Anyone else having this problem?