Replay Music can record audio from your sound card. It can also split and tag songs automatically. The more popular the song is the more chances that it can be identified and tagged. Replay Music has has a volume slider in its settings.

You can also record with freeware Audacity. It is a very powerful sound editor. You can use it to normalize volume, remove noise such as crackling. The program is very good, but requires lots of manual work.

Note that when you normalize the volume, you usually lose some quality. If you plan to listen to your music on your PC only, you can record sound as is and then use audio normalization function of music player software.