No, it's streaming audio from a computer souce ie: internet.

You should be able to acquire a cord with the mini 1/8" stereo plugs on each end, and plug one into the green output and the other into the line in or microphone. Of course you correctly identified that you need a "Y" connector to hear the sound.

This is similar to the setup on the ATI All-In-Wonder card when used as a TV tuner, had a feedback connector that was plugged into the audio card line-in connector.

There are programs that will let you do this with software so you don't have to physically patch cord the audio card. Perhaps one of the other forum members are familiar with one.

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If your sound card supports it, you may be able to record from an input option titled "Stereo Mix". This can record whatever audio goes through the speakers.

However, some budget sound cards (including this Sigmatel card on my Dell laptop) don't have this feature, which makes it an inconvenience having to fiddle around with the stereo plugs, as posted above.