Recording Question.

Like Tunebite, can Audacity record whats playing thru the soundcard?
Or does it all have to be recorded from the microphone?

So far, I can only pick up audio that goes into my mic. Which doesn’t give me the quality i want.
Is there a way to just steam some music, and have it recorded without the mic at all?

Like that other program, it depends entirely on your hardware:
http://audacityteam.org/help/faq?s=recording&i=streaming