Recording Sound from the Desktop?

What would be the easiest and cheapest way to get direct sound output for recordings when doing things on your desktop? By this, I mean no ear-r4pe quality, and no camping a mic next to the speakers.

If it matters, I'm tinkering with HyperCam 2.

Fraps? :o

I know it does Video too, but it records Audio from desktop and you have choice if u want to record from your mic. If that's what you want.