Try

Control Panel
Sounds
Recording

If "stereo mix" or "what you hear" is not showing

Right click in window
Put checkmark in "Show Disabled Devices" and click apply

Then see if Audacity will recognize sound card.


I also use an mp3 recorder that works well and recognizes my realtek sound card.
Lets you adjust bitrate.
Your soundcard should show in "Devices" area

http://www.mp3mymp3.com/