You are recording the laptop's built-in microphone.
So I understand, you were recording YouTube or some other internet audio and were getting room noises as well?
Recording Internet Audio can be amusing depending on your machine and how new it is.
http://wiki.audacityteam.org/wiki/Recor ... e_computer
You should know that recording a live performance in your living room takes different settings than recording internet audio. If you think it's easy getting back and forth between the two, then you're probably doing it wrong.
You should also stop using Audacity 1.2.
Audacity 1.2 is very old and no longer supported,
patched, corrected, or updated. Audacity 1.2 can
be unstable on newer computers.
Download and install the latest Audacity 1.3 from here...
http://audacityteam.org/download/
You can install both audacity 1.2 and Audacity 1.3 on
the same computer, but only use one at a time.
Audacity 1.2 will not open projects made on Audacity 1.3.
If you use MP3 or some of the more modern audio
compression formats, get Lame and FFMpeg software
from the same web site. Do not use older software
or software from other web sites, even though they
may have the same names.