While I also own a copy of Audio Hijack Pro, I have gotten used to
Wiretap Studio, which can both record and edit. I prefer the source selection of Wiretap over Audio Hijack, although the latter works well enough. I frequently use WS in conjunction with
FStream, a freeware internet radio player available for both Mac OS X and iOS. The
iOS version has a so-called web module, allowing you to edit your radio stations on your Mac, and sync them to your iPod/iPhone. FStream also has recording capability (wav/aiff only), which I occasionally use on iDevices. FStream's web module is then used to get the recordings off the iDevice, but you'd need a separate editor to tinker with it or convert it to another format.
