Help with audio recording

[Lost]

I was wondering how I would go about recording audio from my computer to an audio file to be played on a mp3 device. I have Audacity but im not sure how I would go about it. Currently I am just recording the audio through my speakers via usb mic but it sounds muffled and you can hear the mouse clicks.

I guess im basicly wondering if it's possible to use a program that would record the audio before it leaves the computer and goes to the speakers or would I need a program to rip the stream?

Thanks in advance!

[Caiyuo]

You certainly can, try this: http://audacity.sourceforge.net/help...ng&i=streaming - Might be a little confusing with Vista/Windows 7, but there are links on that page that elaborate on the process.