Ok here is a tunebite guide to help anyone that is having problems with it.
First you need 2 programs:
1) Tunebite ( google this and get a 'fix' or buy it! )
2) Advanced MP3 Converter ( google this and get a 'fix' or buy it! )
Setup - Tunebite:
Volume settings: totally up to you, don't turn it too high or it caps off the peaks, use your own settings for this as it does not matter with how it records it.
Input Device: Set this to your sound card always! do not use microcrap sound mapper it really does suck
Input type: Wave, I've tried alot of them it works the best.
Edit: Using auto mode the track comes out to be 1 second shorter than the wma file which comes off the end of the song normally, no big deal for me.
Output File Type: use the default vorbis encoder it comes with and output to .ogg files and then use the MP3 Converter to convert them ( plus you can see the duration of the .ogg / play them in it )
Mode: Really either one works, Auto or Manual the thing is, Auto mode can slug up if you don't have a decently nice computer or are lacking ram I suggest you do Manual Mode since it will open each file individually and put a delay between recording otherwise try either one.
Hope this helps anyone trying to record music and rock on!