there are so many applications that record. Cooledit it one. Goldwave is another. I just checked out cooledit (an older version than the current one) and it uses the windows OS mixing utilities that you get when you click on the speaker in the bottom bar, then click on the advanced menu, be sure that under options "mike" input is checked. Then it should record from the mike with no problem.
I'm pretty sure Goldwave does the same. They will both allow you to create wav files from the recordings and also to edit the recordings.
I hope this helps.