I set the Audacity input to "Record Master", and when I do a SnagIt video capture, it includes the audio (that's how I can grab web videos).
If I place a Radio Shack telephone recorder inline with my phone, and feed it's output to Line-In, and set Audacity's input to Line In, Camtasia or SnagIt can capture the audio from a phone conversation.
By selecting any one of these input sources in Audacity (or the computer's Recording Controls), they become the audio input for SnagIt and Camtasia.
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