You can use the Simple Sound app found in the Apple Menu. Go to the Monitors and Sound Control Panel, click on Sound and change the Sound Monitoring Source to Sound In. It ususally is set to CD. Make your audio connections and open Simple Sound. Click on New in the File menu and you will see a window with a few buttons. When you are ready, press "Record." The amount of time left will be displayed as recording proceeds. When ready to stop hit Stop. Save to a convenient location. I believe the default format is System Sound. You can drop the file on Quicktime Player and a Player window will open with your sound in it. You can do some editing with the Quicktime controls (cut, copy, paste,etc) and you can make some changes to the sound by opening Movie Properties, selecting Sound in the left drop-down menu and Volume in the right one. Volume, left/right stereo balance, and bass/treble can be changed.
When ready to save, use Export from the File menu. Choose Sound to Aiff in the Export drop-down menu. That's it.
I have done this with the Audio out from a VCR and it worked fine. However, there are probably some dangers of damage to your sound port if the sound level is too high or the wrong kind of signal. More info on the topic is available from the Mac OS Help choice in the Help menu when you are in the Finder. Also, when finished, don't forget to change the Sound Monitoring Source back to CD or what ever it was when you first opened the Monitors and Sound Control Panel.
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