Click the Audio Button
Click the Audio button in the project pane to open the Audio menu.
Select Convert LPs/Tapes
After the Audio menu is open, select Convert LPs/Tapes to launch LP and Tape Assistant. A button for a Recording Setup Guide is in the upper-left corner and if you have any questions about the hardware setup for a line-in option, this will probably answer those questions. You can also read more about hardware in task 
About Audio Capture Hardware.
Set Advanced Options
After you have launched LP and Tape Assistant, take a look at your advanced options. Although the term advanced implies that only advanced users would want to set these options, this isn't true in all cases.
In the General window, you'll find that you can set a specific length of time to record as well as set an auto pause in case the recording goes silent for a specified amount of time. More importantly, you can choose the location to which you would like to save the file. Make this a folder that is conveniently accessible and easy to remember. When it comes time to add these tracks to a project, you'll want to be able to find them again. After you've determined where to save your file, you need to name your track. You can enter a name in the File name prefix text box. LP and Tape Assistant uses the text you enter to begin the file name for each recorded file. For example, if you are recording several audio files and enter Audio, the recorded files are named Audio_1, Audio_2, and so on.
In the File Format window, there are basic as well as advanced capture settings for the file format you would like to use. Your capture settings are determined by what kind of project you are planning and the amount of disk space you have available. A WAV file is the highest quality file available. It is also the best option if you are planning to edit the audio file in any way. You can convert the file to a different file format after you have edited it. An MP3 or WMA file is the popular choice for use with your computer or digital media player. It can still be very good quality, and it takes up a significantly smaller amount of space. Either one is a good choice; it just depends on your preference. If you are limited on space and don't mind giving up quality, choose the lower quality settings.
For the advanced user, you can also customize your audio. This option enables you to apply your own combination of settings, including an alternative file format, encoder type, bit rate, and file location. To define custom settings, click the Edit button to the right of the Capture settings menu.
In the Track Detection window, you can set up options that create a new track whenever a pause is encountered. This is handy if you are capturing several audio tracks in one stream. For example, you could automatically create a new track for each song if you were capturing streaming radio from the Internet, a tape, or an LP.
Tip
You want to enable Track Detection if you are recording a stream of several tracks. For instance, if you are recording radio off the Internet and don't want to monitor each song, the track detection feature automatically creates a new track for you at each specified pause.
Select the Source to Capture From
After you have set your advanced options, you need to navigate the Capture From drop-down menu to choose the hardware device that will capture your sound. Commonly your sound card is the only device listed here. If you have a USB input device, this is also listed. Choose which source you will be using.
Select the Input
After you have chosen what you will capture from, select your input device. This step requires that you have correctly set up the required hardware for the input device you would like to use. You can learn more about this in About Audio Capture Hardware.
Several input devices are listed, so let's take a look at each one:
Phone Line Choose this option and you can record a phone conversation through a phone line connected to your modem.
Microphone Record live audio through a microphone using this option.
Line In This option is for any device plugged into your sound card or a USB input device. For example, you would choose this option if you had a stereo hooked up to your computer in order to input LPs or tapes.
CD Player This is simply another capture option for inputting audio from your CD or DVD drive.
TV Tuner Audio If you have a TV tuner connected to your computer, you can capture the audio from your TV programs by choosing this option.
Aux If you have a device plugged into your auxiliary line-in port in your sound card, choose this option.
Stereo Mix and Mono Mix These are options for capturing Internet streaming audio. A stereo mix gives you two channels of audio, while a mono mix gives you just one.
SPDIF This option appears in your menu if your sound card has RCA, coaxial, or optical ports. If you have these ports and the cables to use them, they are the best quality choice.
Set the Recording Level
After you have set your input, drag the recording level slider to the desired position. You want your recording level to be as high as possible without creating distortion. Set your levels until the left and right meter indicators below the recording level slider are in approximately the center of the meter. As your recording progresses, make sure that they rarely, if ever, reach the top of the meter. This keeps your recording free of distortion. You can also click the Auto button next to the recording level slide. You need to do this while your audio is being played so that LP and Tape Assistant can monitor the levels. LP and Tape Assistant automatically tracks the levels of the meter in order to use the highest possible recording level.
Set the Balance
After you have set your recording level, drag the balance slider to balance the audio level between the left and right channels.
Click Record
When you are sure that all your settings are correct, click the Record button. After you have clicked the Record button, start the audio that you are capturing. This ensures that no clipping occurs. When you are done recording, click the Stop button.
Click Next
When you are finished recording your audio with LP and Tape Assistant, click Next. This takes you to the next step, editing your newly captured audio. This is covered in 
Convert Audio File Formats.
BEFORE YOU BEGIN
SEE ALSO
Capture Audio Using Easy Audio Capture
Burn Audio Files to an Audio CD
Create a Jukebox Disc