I am chatting on gtalk and want the following things to happen:

I am listening a song in Windows Media Player and I want my friend on the gtalk to hear what I am playing on my PC simultaneously I want he can hear my voice also.

That means I want my microphone to accept my Windows Media Player input and my voice also. How can I do it?

I am running on Windows 7.

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Virtual Audio Cable may be what you need. It does require you to boot without checking driver signatures though, if using Vista and up. You have to keep pressing the F8 key on startup to bring up this screen:

Advanced Boot Options

Virtual Audio cable is also not free, and I have yet to find an alternative. The trial is fine, but you do get a small blip every few seconds, notifying you that it is a trial.

On Gtalk, set your mic option to Virtual audio Cable.

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