Eh I’m running Windows 8.1 (which has never been a problem) on my PC and just today am having problems with recording audio. Today we are trying something different - a podcast - and as you can guess we are looking to have the best possible audio recording for our situation. Anyway, at first I was just going to use FRAPS to record the audio as it usually works fine, but when I recorded the audio my microphone is perfect, yet my friends on skype - although I can hear them perfectly through my speakers - their inputs are very low that I cannot hear them in the recording. This happened also when I tried it on Audacity which i just downloaded today. Any help on how to get their levels up on the recording, or sort the problem?

Skype recording is more of an adventure than you think. You are probably recording the Skype echo cancellation service, not the real thing.

The best way to record Skype is to use software that is specifically designed for the job, such as “Skype Call Recorder” > > (Free, open source software) or “Pamela” (commercial non-free).

Pamela is paid software, but works very well. The lower two licenses are intentionally crippled in order to make you buy a paid license.