Nope they are actually right.

What you are trying to do is being prevented by a driver issue. The driver for the audio in your machine is not providing a capability to record what is going out of your speakers, the common use for the "Stereo Mix" functionality. You need to talk to the sound card manufacturer, in this case the laptop manufacturer is a good place to start as it is likely a built in sound card. Of course that doesn't mean you will get much help from them, I wouldn't hold my breath. The end result is you are likely screwed in that regards, sorry.

On Mac or Linux I could make some suggestions for audio routing programs that would negate this need, but sadly on Windows I don't know of any off hand.

Seablade