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Hi,
Does the sound card supported stereo mix earlier?
Firstly, I’d suggest you to visit your computer manufacturer’s website and download and install the latest sound card (audio) drivers.
Refer the links below for more info on updating drivers:
Update a driver for hardware that isn't working properly
Update drivers: recommended links
**http://windows.microsoft.com/en-US/windows7/Update-drivers-recommended-links**
If the "Stereo Mix" type device did Not show up in the "Sound" window when right-clicking and selecting Show Disabled Devices, it may indicate that you have Integrated Sound, and recording streaming, etc. is Not supported. In that case (on a Desktop PC), installing a sound card into an available slot should solve the problem.
Sometimes downloading and installing your sound card manufacturer's latest drivers can add additional sources like What-U-Hear, Stereo Mix, etc. Also, some users have reported that "downgrading" drivers to older versions have helped them instead of "upgrading.
Stereo Mix is available if the other devices (Microphone, Rear input) are enabled and set as default devices.
In order to enable and make the Stereo Mix available, you would have to right click on Stereo Mix and select ‘Set as Default Device’.
Also try running these troubleshooters and check if it helps:
http://windows.microsoft.com/en-US/windows7/Open-the-Recording-Audio-troubleshooter
http://windows.microsoft.com/en-US/windows-vista/Troubleshoot-audio-recording-problems
Please respond back and let us know the status of the issue.
Azam – Microsoft Support.