Try this before downloading any software......the easiest thing (provided your soundcard is capable of it...which it probably is) is doubleclick the sound icon in your tray....
Options -> Properties -> Recording -> make sure all the options are checked -> OK -> select an option on the mixer that contains CD or DVD. Now try recording. If that doesn't work, go back to the recording mixer and select "What U Hear". Now goto sound recorder and try again. If that doesn't work, then I'd try the above-mentioned suggestions.