Q: Is it possible to record radio on iTunes?
A: While it is not possible to record radio from directly within iTunes, there are a couple of options that are designed to do this specifically with iTunes in mind.
If you are looking to record Internet radio streams, such as the radio stations that are listed in iTunes itself, Griffin Technology provides a software package called iFill ($20, iLounge rating: A-) that will allow you to record content from Internet radio stations on a scheduled basis, automatically saving and individually tagging content for your iTunes library, ready to be listened to through iTunes or transferred to an iPod, iPhone, or Apple TV.
On the other hand, if you want to record over-the-air AM/FM radio stations, a hardware device will be required to allow your computer to receive these radio stations. Again, Griffin Technology provides the solution for this as well with their radio SHARK 2 ($50, iLounge rating: A-), a USB hardware device that you connect to your Mac or PC which streams radio stations for recording on your computer and automatically adding the results into your iTunes library. Think of it as TiVo for radio.