trying to find a solution to the recording music problem with win7. So far after having win7 for a year and trying all the things that people suggest to correct the problem I still can't use my music software to input anything. First I was faced with latency issues, the answer to that was ASIO drivers but everything goes silent with Win7 because of the changes made to sound management.
I do not believe your issue is with W7 at all but is really with the sound driver manufacturer.
In XP I had the option to record from websites etc but when I went to W7 the sound driver for this hardware no longer included that. (I suspect it may be related to pressure from the music industry to help prevent copying audio straight from the web etc, but maybe that's just my big-brother paranoia.) No matter the reason it wasn't W7, they don't write the drivers.
There is very little incentive for hardware manufacturers to develop drivers for old hardware; personally I think they are missing an opportunity to sell older drivers, but as it stands they give away drivers or they stop supporting because they are more interested in selling new hardware than in spending developers time writing older drivers.
It doesn't solve your issue I'm afraid, your best option is likely new hardware, but I felt it was important to put the blame where it belongs, on the hardware manufacturers not on Microsoft.