Hi Vicki,
it's difficult to work out what the problem is without further details of what 
settings your friend tried. Both vista and windows 7 have similar dialogs for 
sound settings. As someone has already said, it depends on the capabilities of 
the sound chip and its driver, as to whether he can do what he wants to do, but 
I think there's a fair chance that he can with most laptops.
My assumption is that he wants to following set up:
1. The inputs of both audacity and skype are set to "stereo mix" or similar, so 
that the inputs are the audio which is going to the output device. This means 
that the inputs pick up jaws directly, rather than through speaker and then mic.
2. The output device is set so that it passes through the mic input, so that 
the audio going to the output device also includes the mic input. This is set 
on the levels page of the properties dialog of the output device. Note this 
assumes the use of a mic with a jack plug, rather than a usb mic.
 
best wishes,
David.

original message:
I have a question regarding JAWS and recording conversations on Skype using 
Audacity.

My friend needs a laptop that will record conversations using the Audacity 
program which will also pick up, not only the voice of the other person, but 
JAWS as well. He not only needs JAWS picked up during a recording, but 
picked up during a conversation with someone else that is not being 
recorded.

Right now he is using a Toshiba laptop with Vista that does just this. There 
is no problem recording conversations with others and JAWS using Audacity 
and picking up everything and no problem for the person he is speaking with 
outside of a recording hearing JAWS clearly while on Skype with him.

Because he needs to replace this laptop, he is looking for a laptop that 
will do the same thing as he is taking a class that needs these functions. 
He has tried several Toshiba laptops, an Asus and an HP. All use Windows 7. 
The HP worked just the same as his Vista, however, there were other problems 
with this laptop and he needed to return it.

Toshiba is telling him that there is no problem with their product and that 
it is a Windows 7 or Skype issue, however, as I explained, it worked fine 
with the HP which also used Windows 7. He uses the latest version of  Skype 
and he used the version of Audacity which works with Windows 7.

Here are my questions.

1. Does anyone use a laptop with Windows 7 that will pick up a recorded 
conversation, both voices and JAWS using Audacity? A desktop computer is not 
an option and another recording program is not an option. It must be a 
laptop with Windows 7 and Audacity.

2. If anyone has used such a computer and found it to be something that they 
didn't like, was there a setting in Skype, Audacity or Windows 7 that they 
changed to stop it from occurring. If so, where can that setting be found 
and can it be easily reversed?

3. If there is a laptop that will work, I need both the brand and model.

Thank you.

Vicki

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