In Windows 7 the lesser used devices including the WaveOutMix, MonoMix, StereoMix are disabled by default.
If your your sound driver supports this feature, you can enable it.
Right click on the Speakers icon in your Notification Area and select Recording Devices.
Next in the Window which opens, right click and select the option Show Disabled Devices.
Select the recording device/s and Enable it.
Click Apply > OK.
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