I use DAK Wav & MP3 Recorder & Editor. One of the best features it offers, IMO, is that it allows you to capture a whole album side as one large file then take that file and break out the individual tracks. For a free software you can get Microsoft Media Encoder from microsoft.com but it's more difficult to use in that you have to capture each track as a seperate file.

I use the program called audacity with the Lame plug-in I might try plugging the stereos line out to the line in on your sound card and record away this way you can make MP3's or wav's of the whole album or single tracks it's a free program so you can try it with out spending a lot I've recorded TV shows this way and it works well once you get the volume levels right.