To record streaming audio from websites-

1. Download FREECORDER toolbar for your browser from http://www.applian.com/freecorder4/.
   By default it will save the audio in mp3 format. But it also has a converter tool using which you can 
   convert to other formats. You can also use SOX (http://sox.sourceforge.net/) command-line utility for 
   various audio conversions.
   
2. Audacity recording settings (in order to record in mono format at 8kHz) http://www.ee.iitb.ac.in/daplab/resources/Audacity_recording.pdf