I've used "Polderbits" audio recorder program. You can download it here:
http://www.polderbits.com/
It will record ANY audio output from your computer (provided it has a sound board) and you can record input as well, mic. music player, telephone, etc..
It will record in several formats and you can load one format and save as another. I think you'll like it.
Well worth the $30 bucks (FREE TRIAL)