Unable to record internet radio programme without distortion – HELP!

I’m having serious issues recording radio programmes, so hopefully someone here will be able to help me because I’m at my wit’s end and the things I’m trying to record are only available for a few days.

I am using Windows 7, Internet Explorer 8 (only brower that is compatible with my screenreader), and a Sound Blaster X-Fi soundcard connected via USB to Logitech Z5500 speakers. Playback always works just fine, the sound is excellent. However, problems arise whenever I try to record things.

A week ago, I tried to record a Choral Evensong broadcasted on BBC Radio 3. So I enabled the What U Hear function on my Sound Blaster and used Audacity to record. The sound truly sounded horrible, way to hollow, unclear and the bass sounded too loud. I then looked around online and disabled all the soundcard’s enhancements and tried again. This time, it sounded a bit clearer but still very weird. Tired of Audacity, I used Wavepad and the result was considerably better, clearer sound without any noise, but it always sounds like you’re listening from a great distance with your ears partially covered, like you’re hearing the sound from a deep underground tunnel that partially blocks the sound. I hope this discription makes sense to some of you.

What on earth is going on here? Is IE corrupting things, is Flash PLayer the problem, does BBC 3 have a kind of backdoor that distorts recordings, is my soundcard bad or are the speakers bothering it or do I need to use another programme? I really have no idea what to try anymore!