record button grey

Mac Os 10.6
latest version of Audacity

I am trying to record sound from a lecture that is on the internet. So a system recording.
I have the Mac sound preferences set up with Soundflower 2 as the imput and output sound system
I save the recording and the record button goes grey.

I was able to make a trial recording. Then I tried to follow some instructions to set up the preferences. No matter how I change the preference, nothing changes. Wish I could send you a photo to show you the set up.

Audacity includes in-built screen grabbing. Look under Help > Screenshot Tools. That might be a different command on your Mac: I look through Windows!