Could any one suggest me the best way to record the sound/vocals from an external audio player to pc. Suggestion will be highly appreciated.

Would something like this work?
http://www.futurelooks.com/?m=show&id=265

To get your work done, all you have to do is, install a good music recording software. For this I would suggest FlexiMusic Audio Editor (http://www.fleximusic.com/waveditor/audioeditor.htm), after Installing the software, now connect your Mic or any external audio player at the back of the PC. While using the software you get an option asking through which you like to record ( for this click the option which is related to the external audio player being used ) with this your recording gets completed.