Wave Out

[OmfgUrANoob]

Get Virtual DJ 6.2 (quite easy to find on any torrentsite)

Install it,
start it up,

go to the tab saying 'record'
click on config,

in the option 'record from' select 'Line In'
behind 'Line In' select 'Stereo Mix'

Give the record file a location and name like:
C:\Documents and Settings\Maka's PC\Bureaublad\RecordedLiveStream.mp3

click on OK and then click on 'Record'
and play the livestream.

Be aware, all sounds the PC makes are recorded so make sure your msn or GTA doesn't make a sound.
Maybe a lot to do but one thing is certain ( IT WORKs)

PS.
Test it:
Record like 10 or 20 seconds and see if it worked.

Groetahh!
Omfg