To all my fellow brushies...I figured out that pesky problem with vista and wavepad. It's not a problem of compatability at all but a problem of simply enabling what shouldn't have been disabled in the first place. Yes, they will do such lame things to make us think a little bit but at the end it all will work itself out.
For those that didn't reply to my concerns, let me lend a helping hand. Here is the scoop on how I got mine to work.
Here is what you will need to do:
1. right click on speaker(volume) icon on bottom right of monitor(beside the clock)
2. select recording devices
3. right click on auxilary option
4. select show disable devices
5. with this selection, as you scroll down, there should appear another selection which says "stereo mix"
6. select this stereo mix and enable it...
7. then go back to wavepad to into your recording device and set it to "stereo mix"
Hope this helps.