You'll notice that the volume controls have now changed from playback into recording, this is because we changed the properties to show 'Recording' (remember that part?). Only 2 volume sliders are shown in this picture, that's because we only selected to see 2 in the properties box (see above), I asked you to select all the volume controls within' the properties box, so you should see more than 2 sliders, probably 4 or 5.
The next part is quite tricky, because it is different for a lot of computers. The 'Select' checkbox determines which device you want to record from, in the picture you will see 'Microphone' & 'CD', because 'CD' is selected, when you record a sound it will ignore everything but the CD-Rom, if you are playing a CD, the sound recorder will only record the music you are playing (when you press the record button). If you select 'Microphone', the sound recorder you are using will ignore everything but the microphone, so, if your microphone is pluged in (correctly), your sound recorder will only record the mic when you press the record button. If your new to computers, that's a lot to take in, but read over it and play around with the buttons until you understand.
Here's the tricky part, it can be easy or difficult depending on your sound card.. Some sound cards will only let you select one device at a time, others will let you record from multiple sources, if that is the case, just select the device you want to record from (IE, Mic or CD), in the picture, the CD is selected. The volume of the recording sliders is also quite tricky, some sound cards are more sensitive than others, which basically means that if your recording volumn is too high, the sound file will be too loud and probably unlistenable, the majority of sound cards have a simple sensitivity that can be set to high and it won't affect the sound, others, you'll have to move the sliders down so that the wave is not too loud. For this example, I would suggest moving all the volumn sliders into the middle, so that the sensitivity is set to average. There are more problems which can come up, but the majority of sound cards should be OK.
To demonstrate this tutorial, select 'CD' only, so that only your CD player can be recorded, and be sure to set the volume slider into the middle. Close the window and the settings are automatically in action.