You posted your question in a group frequented by Windows' programmers.
You'd probably have better luck in an end-user group such as this one:

   microsoft.public.windows.mediacenter

That said, and just so you don't go away empty handed, you can type

   sndrec32

in the "Run box" of the "Start" menu to run the old sound recorder, hand
your granddaughter and mic and click the red record button and then save the
file.

Instructions for saving a file to CD are here:

http://windowshelp.microsoft.com/Windows/en-US/help/9ee6cb78-bd7e-4de3-a154-82d4
0c4289e01033.mspx

Regards,
Will