I’m glad you found a solution, but if you don’t mind, let me add the following experience.

I have had many, many occasions where I needed to record sound from my PC. And it was always a pain because each application and piece of hardware seems to want to grab control of the PC’s audio capabilities and not let go.

If I recorded something from the Web, then I couldn’t record from BiaB. If I recorded from BiaB then I had trouble recording from Media Player. And so on.

The latest version of Total Recorder, however, now has a Recording Wizard.

http://www.TotalRecorder.com/

No matter what the source of the audio, I just start the T/R Wizard and it detects it and configures the application accordingly.
Greatest thing in the world since sliced rye bread.