Hi I’m a new user. I have Windows XP and Audacity 2.0.2 from .exe
I seem to be having trouble recording directly from my computer (ex: from youtube or a CD)
It doesn’t matter what program I use (Audacity or Windows Sound Recorder) they can ONLY record from the mic. Everywhere on google says that simply enabling stereo mix will help but it doesn’t. I have added a photo of the options I have selected in Audacity, SoundMAX, and Windows options. Any idea what I’m doing wrong?
Thank 
There’s nothing simple about it. “Direct” is what happens when you listen to YouTube or record your voice on the built-in microphone. Those are guaranteed sound services on most computers.
Stereo Mix is a “fake” device designed to run the play service and the record service at the same time. It’s a recursive sound pathway and there’s nothing direct or simple about it. Some computers can’t do this at all and there’s no guarantee that it’s going to work.
For recording, I think I would disable everything but Stereo Mix to keep Windows from trying to mix everything together. Then go to Playback and select where you want it all to go.
http://manual.audacityteam.org/o/man/tutorial_recording_audio_playing_on_the_computer.html
Koz