Welcome to the forum Fable! First, For you all important links:
http://lmms.io/forum/viewtopic.php?f=1&t=4740
I has to disapprove your second request, because it is an old request, and one day it will be implemented. Please do a search before requesting new features, as written in the red box :)
Even direct recording is asked for before, but the 'mashing' thing is different, so i will allow this. But i have to tell you that recording is not upcoming for next release, and not to sure about how useful it would be. Running audacity infront of lmms, would be a functional solution, since audacity can record microphone separated from aux output.
Audacity is good for a lot more, so we recommend it :)
Get it here, its free too:
http://www.audacityteam.org/