Hi, i’m having problems trying to set up my American Audio VMS4 to The Audacity Program that i’ve installed from the .exe installer. There doesn’t seem to be any probs with the program itself as far as i know,its more my understanding (or lack of) of how to set it up from the instructions. I like to record my mixes an Audacity was recommended. The VMS4 is connected by phono cable to a Numark CM100 Mixer with the connection options of master,booth, rec & send at the rear of mixer (would normally use master) and the laptop i’m using is a Dell Latitude E6410 running windows 7. Just looking for an easier breakdown of how to connect it all up for recording on Audacity? Any answers would be helpful. Many thanks. 
(Forgot to mention,i’m running Virtual DJ 7 on my laptop).
It sounds to me like you can easily record the mix directly in Virtual DJ - trying to involve Audacity needlessly complicates things!
I just Googled the documentation for the LE version which says:
VirtualDJ provides an additional ability to record the output. To access the recording feature click on the
―Record‖ tab.―Record‖ provides recording a mix session to a .WAV file direct to the system‘s hard drive. When the
recording is completed, it can then be listened to in VirtualDJ, edited with an audio editing application,
or written to a CD using a CD burning software.To start recording your session, simply click on the ―Start Recording‖ button and provide the location
and name of the file to store your recording.
Thanks for your reply. I should have mentioned the reason why i need to use Audacity. Virtual DJ 7 works with American Audio VMS4 & is sold with the product etc but by default when trying to record or broadcast a mix all the channels & crossfader are permanantly open so everything that i do (eg-cueing tracks,previewing tracks in the supposedly closed channel) ends up being recorded live! So resulting in a completly messed up set…I have tried everything that is set out in both the virtual dj 7 user & audio guides,checked forums but at the moment still no success. 
With respect there has got to be something there you are missing, since the situation you describe otherwise renders the ‘feature’ completely useless.
That said when I Googled for the page from the manual above I did come across some configuration screens that looked complicated and jargon filled. Nevertheless I really think you need to persevere and figure out how to get the setup working – have you tried the Virtual DJ forums?
Well having found the following it seems I have to correct myself:
Recording your set or broadcasting when using an external DJ mixer
If you are using a standard external hardware audio DJ mixer > or a MIDI controller > that has a built-in audio real hardware audio mixer (E.g: Numark MixDeck) and VirtualDJ configured to output its decks to separate channels on the mixer (CONFIG → Sound Setup → Outputs: External Mixer) then you will hear both the live and pre-listened decks in your recording/broadcast if you attempt to record or broadcast your set.
This is because VirtualDJ has no way of knowing where the crossfader/volume sliders are on the external mixer and which channels are currently playing out live. As far as its concerned, its volume sliders are up and crossfader is in the middle, so both channels are being output live and as such, both will be recorded and/or broadcast.
To be able to record/broadcast, you will need to connect a suitable cable to the REC OUT or RECORD output of your external mixer and connect this into the line input of your computer’s sound card.
Choose the appropriate sound card’s Line Input as your recording/broadcasting source (Recording Loop Back using advanced sound config in VirtualDJ v7 Pro or Basic) or use 3rd party audio recording software such as Audacity or 3rd party broadcasting software.
NOTE: If your mixer does not have a REC OUT output, the BOOTH output can be used instead providing this is a line-level signal (I.e: Red/white RCA phono sockets.) Make sure that you adjust the booth output to an appropriate level using its knob, because this will affect the overall level of the recording/broadcast.
On that somewhat incredible basis it seems you need an external soundcard for your laptop, with a line in input Audacity can grab the mix from.
Do you have an interest in using timecode vinyl/CDs?