How2 record from Pc, not its speakers, not input or anything

I read this link:
and a few others but either I’m misreading and therefore doing something wrong somewhere or the problem is exterior to what I’ve read.
I want to record something from my computer, for ex a Skype conversation or streamed music.
I tried ‘MME’ and ‘Windows Direct Sound’ as Audio Host and ‘Primary Sound Capture Driver’, Microsoft Sound Mapper’, ‘Line in…’ and ‘Aux…’ for Recording Device
What I’ve noticed is 2 things:
-1- Somehow the level being recorded is also dependent on the Playback level-which to me doesn’t make sense. Even if the microphone has been disconnected from the PC.
-2- The final output, when replayed sounds terrible, quite flat lacking, bass, mid-tones and highs.
What am I going wrong?
Thank you

Skype does not play well with others. It got its reputation for “always working” because it brutally takes over the computer sound services when it runs. That may seem to be evil behavior, but it lets Skype connect no matter how badly you messed up your sound. It also means no matter how carefully you set up your computer, Skype is going to change it. If you fight Skype, you could kill off your echo cancellation and one of the two sides will not be able to hear the other.

Skype conversations can be recorded with special purpose-built software packages. Pamela is the champ. The upper two licenses, Business and Professional will provide split WAV files for a Skype call suitable for post production/editing. You are warned about software that insists on using MP3 or jamming both voices into one file. Those can make post very difficult.

In general, self-recording is done by sending sound out to the sound card and then bringing it back in for recording. That’s why those techniques always use the Playback Volume control, and why it can sound so bad. The channel has all the soundcard playback and recording errors.

Some software creates a “fake” soundcard in memory and uses that instead.