By default, you can not record the PC
sounds or system sound in Windows 7. To make it more easy, you can
nor directly record log off logon sounds, Windows 7 voice etc. We will
show you the easy way to record any sound that is generated in your
Windows 7 pc.
Right click on the speaker icon in the notification area and click Recording devices :
Sound Window will open. Right click in an empty place inside and check the option saying “Show disabled devices“.
You will find a grayed out icon named “Stereo mix” . Right click over it > click Properties > in Properties window, from Decive usage drop down box select “Use this device (Enable)” :
Original source: The Customize Windows