[TheMajor]

I tried Nero Wave Editor and Audacity, but I am not able to record both microphone and the sound I hear at the same time.
I want to record conversations.
If I open sound manager and select "what you hear" the micophone stops working.

Is there an program like Nero or Audacity that enables m to record from any source at the same time?

[TheMajor]

Nevermind, I figured it out. Had to unmute MIC, then record "what you hear".

[TheMajor]

No, still doesn't work. The other person cannot hear me because the microphone is disabled this way. It records the sound you hear, not the MIC directly, so the sound recorded by the MIC is not send to the other person.