This program, (Audio Recorder for Free), is a neat little program that's extremely easy to use.
It can assist you in digitizing your records and tapes etc., which is nice, but it captures EVERYTHING that your soundcard gets. What this means is you can record streaming audio off of the web. (Pandora, internet radio, etc.) It works really well and has a number of built in features that compliment it nicely.

It's virus & spyware free. It will put an icon on your desktop to try and get you to try out their audio editor, (which is not free). The editor is little more than Audacity (which IS free), so using this with Audacity is probably the way to go. (At least the cheapest).
I use this program all of the time and it works really well.
(One hint....keeping the gain at 50% or a little less, along with your system volume at 50% or so, seems to work the best for recording.)(Disabling your EQ is a good idea as well)
I'm hosting this file so if you have any troubles getting it, let me know. Otherwise, just click on the file named "Audio Recorder" and it will prompt you to download the .zip.
Merry Christmas!