New Headset dilemma (C-Media USB Headset to be precise)

With my old headset i used to have a blast recording sounds/music coming out of my comptuer directly using wave out. Often for MSN voice clips and such.

I haven't changed anything, but now that i have this new headset, the only recording i seem to be able to do is voice recording in sound recorder, i can't seem to record wave out mix on sound recorder, and can't record anything whatsoever in msn voice clips.

I can hear voice clips sent to me though, strange thing is, when someone invited me to an audio conversation earlier, i got the annoying ringing noise alright , but i couldn't hear anything.

I checked my volume controls nothing is muted.
Any help would be fantastic! Thanks in advance

 

Lame