liteRecorder 1.1 allows you to record audio from your PC and output to MP3, WAV, WMA and OGG.
Or rather it does, but only once you've downloaded and installed the LAME MP3 encoder. Paying for software and then having to install a third-party tool isn't something we like - especially when the site liteRecorder pointed us toward sent Site Advisor spinning. (You can, of course, download LAME from PC Advisor Downloads.)
liteRecorder claws back some credibility in two areas - ease of setup and quality of capture. Its setup wizard detects your PC’s sound card to maximise your recording's quality. And it makes a cool submarine noise while it's doing so.
You can capture audio generated by your PC, or via a line-in. You can do the latter with a free tool such as Audacity, enjoy greater editing options and still capture PC audio (if you run a line out into your line in). But you wouldn't get the ease of use that, for around £7, liteRecorder provides. And the additional stage in the capture process affects the quality of the recording.