Great. The reason streaming files are \"free\" is because they can\'t be recorded- unless a strategy/device like this is used. Now the sites streaming files will have to have \"streaming copy device\" detection protocols, and...

There\'s nothing lossless about sampling the analog output of the sound card back into its microphone input...

Or you could just use an open source audio recorder program like Audacity and set it to record directly from your system audio, no hardware required.

Yup Audacity works quite well but it would be just that much simpler if I could plug this thing in and get it. Everybody always acts like things like this are going to be the undoing of the audio industry and in the end it makes people go buy the music more then not, I never bought so many CD\'s before I started to down load off the internet back in the early 2000\'s because I wanted more pristine versions of what I found and wanted more from these artists than what I could find on the net. :-)

Turn on stereo mix... http://www.howtogeek.com/howto/39532/how-to-enable-stereo-mix-in-windows-7-to-record-audio/ ...then use any audio program to record directly from the system to file.
The solution shown is a Rube Goldberg machine by comparison.

Well, you\'re absolutely right, easier to buy and plug a big loopback, than downloading a free and simple program to do the work. You\'re right. :)

Great idea but software already exists to do this, eg Applian Technology software captures both video and audio by setting a capture window onscreen for the podcast, vid, etc. Pretty well foolproof too - Replay Video Capture does it all.

well i have a better trick that i always use. just open your temporary folder for internet explorer and you will find the audio track that you would like to copy. Sometimes you need to do it simultaneously as some website delete after playback.

Hey guys Kenny from Sound Slug here,
Love to see all the input, The Rube Goldberg comparison especially gave me a good laugh. I have used all the methods listed here in the comments and invented the SLUG for its ease of use. It is actually a lot simpler than software out right now, and has no noticeable quality difference. Not to mention it has a variety of uses, like recording audio from external devices. I can\'t wait until the first review comes out on the product because we have added in a few surprises customers will receive with the purchase of the SLUG.
Thank you for all the comments and to Gizmag for the great review. Hope you guys can support us! -Kenny

I can see that this fulfills a need, but there is a very simple way - Total Recorder software. Since you have to start the recorder anyway, Total Recoder is so incredibly simple and records any sound your computer plays - audio, video, Skype calls, etc.
For Slug users - I hope that they don\'t find that the distance between the 2 jacks varies on different computers. And, - as mentioned, this is not lossless - first D>A than A>D back. It is only as good as your converters on the competer.