Can't record via Stereo Mix

I don’t remember when this problem began, it could be when I got this motherboard a couple of years ago… However, I was able to record from stereo mix in the past just for general recording.

The strange thing is when I use Fraps, it records sound. It has 2 sound recording options: First one is “Record Windows Sound” (which is the one that actually works) and the other is “Record external input” which records from Stereo Mix (which I’m certain wouldn’t work). But my question is, how come “record windows sound” works? And is there a way I can just record that without using Fraps? Reason being I don’t want to have to record video when I have to record sound.

Audacity doesn’t record audio either because it comes from Stereo Mix. I tried upgrading my Realtek sound drivers which actually made the Stereo Mix show up in the recording options but I can’t get any levels on it and it’s not muted and it’s enabled and set to default recording device etc etc.

Win 8 64 bit
i5 2500k
8 gig ram

You could try alternative software for recording sound that is playing on the computer, for example Total Recorder (commercial) and SoundLeech (currently free) do not require “Stereo Mix” for recording sounds that are playing on the computer. There’s some other ideas here: