How to capture streaming media Written Guide:
If you were wondering how to download music from youtube easily, then Audacity is the best option. Just change the option to stereo mix and you are all set to convert youtube to mp3.
Download Link: http://audacity.sourceforge.net/download/
How to record the sound playing in your system or streaming music using Audacity
If Stereo Mix does not display, please try the solutions provided here: http://answers.microsoft.com/en-us/windows/forum/windows_7-sound/i-cant-find-stereo-mix-in-windows-7-it-was-in/1140ff33-fd6c-4b4e-80ab-4f94ffe77309. Some of the newer laptops may have problems with stereo mix. Updating the drivers may work for you. Before updating, please don’t forget to create a system restore point. I have not come across this problem and I don’t know how to solve this problem. This is just a suggestion.