At the moment, if you want to make a local recording using HD Wave, you will need to run HD Wave on Windows 8 using the compatibility mode.
To do that, you will need to right click on HD Wave and click on Properties link:
Now, select the Compatibility tab and check the “Run this program in compatibility mode for” box, and from the drop-down menu select Windows 7.
After this, you will close the HD Wave application, and the following window will appear:
This is normal behavior, since you selected to run the application using the compatibility mode.