I did as you said then started slacker.com, then I started AOMRecord, checked the recording levels and then told AOMRecord to start recording on the Next song but nothing ever happened. Also when I started AOMRecord my volume went very low and when I tried to raise the volume through the Windows volume control it would just reset to the previously level after I moved the slider up. I am using the version of AOMRecord you quoted in your posting.
What folder will be used to store the newly recorded songs? I did not see Slacker.com in the drop down list of stations you would start via AOMRecord so that's why I started it separately. Also I noticed the MSIE.INI you sent was about 9K and the old one was about 11K, I don't know if that means anything but thought I'd mention it.
I then renamed the new version of MSIE.INI and renamed the .old version to the original and started AOMRecord and now the same problem happens with the volume control, the volume goes very low on startup and if I try to raise the volume via the Windows slider it automatically resets itself to the low volume level. If I stop AOMRecord, the volume control returns to its normal capabilities.