Can't figure this out

Audacity 2.1.2 on Win 8.1 Asus laptop. When recording an internet stream (which comes thru fine) also picks up ambient room sounds.

Tried disable mic jack but then nothing records. Tried different configs but still picks up room noise along with stream recording. This laptop
has only one input jack. Used for line-in and headphones. Any help appreciated.

Try the “WASAPI loopback” method described here: http://manual.audacityteam.org/man/tutorial_recording_computer_playback_on_windows.html

Tried that. No difference. I think it has to do with Ihe computer’s sound card config. I read some manufacturers set it up so not to record copyrighted materials.
Is there any work around?

WASAPI loopback “should” work as long as you have the correct sound card drivers for your hardware and operating system. (Don’t rely on the generic Windows drivers - they often have limited functionality).

Note that there may also be other WASAPI options. It’s the “loopback” device that you need to record from, and the application that is playing must be using the same device.

Example:
Firefox playing via RealTec built-in sound card. Audacity recording from RealTec loopback. Should work.

Firefox playing via USB headphones. Audacity recording from RealTec loopback. Will not work (different devices).

To check that you’ve got up to date drivers, go to the ASUS website and find the drivers for your model of laptop and Windows 8.1.
More information about updating drivers here: http://wiki.audacityteam.org/wiki/Updating_Sound_Device_Drivers