Bartimaeus

There is a program called Virtual Audio Cable that will do exactly what you want it can create multiple virtual cables that can stream audio between applications but it isn't free it costs $49. You can get a trial but it sucks you can only make 1 cable and after 3 minutes of usage the audio becomes distorted. You could also try hooking up an ipod or mp3 player or even another pc to your mic input and play it that way, just an idea.