the record button not working is 99.9% likely due to drivers of the soundcard.  and since you're using the stock soundcard, you're using drivers which were not really meant to be used in a serious recording program like MC.

Hey just an update. I haven't been on here in a while. I tried looking around for some other sound cards and new driver updates for my computer, but for some reason, nothing will work.  There was some bad crash on my hard drive and it crashed my sound card capabilities.  I messed around with a USB plug-in mic that I have, and for some reason, it configured to my Music creator program (like you had origionally suggested Beagle).  It's a pretty funky way for it to work because now music creator won't work without the mic plugged in.  The mic also, when plugged in, does not allow my iTunes to work.  All in all I'm finding it's my computer's out dated drivers, and useless sound card that was the problem, but music creator is running and recording at the accecptable level it did before my issues.  Thank you guys for the help, I probably wouldn't have figured it out without some sort of leads.  I appreciate the advise for my inevitable future issues with this computer. :D

USB-mics are another headache. Most people have problems with them. As suggested, you're better off with an interface.
The reason MC doesn't work without the mic plugged in is that the mic is the soundcard MC tries to use.

The computer sees the USB mic as an interface/sound card of sorts...and it is. But again, not a very good one.  While some folks do try to use the USB mics and cake even has a sticky post by Fog on how to make them work, we* do not recommend anyone try to use them to record music in MC or any other cake product. (we* = the long time users here)

Try getting a dedicated musical interface... it runs on the USB connection but unlike the mic, it has ASIO drivers and it has both inputs and outputs built in.   Chances are pretty good that it will solve the problems you are experiencing. 

right - I would not have suggested a USB mic, and if I had known you were searching for drivers for your current onboard soundcard I would have said not to waste your time. 

I have recommendations of soundcards on my website.