It's far more likely that there's an issue with the connection, rather than the program. It would be helpful if you would add some detail to 'audio sounded very poor'. Is it distorted? Too high? Too low? Is there a hum on the signal? Are you using a laptop? Did you try using another input (some have seperate line in or mic in jacks)? Some laptops require an attenuating patch cord (RS has them, among others) to cut the levels to the PC. More details, please.
You may need to go into the volume controls for your soundcard (some systems place a speaker in the System Tray. Double click it and see what you get...). You may need to go into Control Panel to access the Sounds icon. Fooling around with the levels may work. Lock onto your local NWS station - something that has constant audio is what you need. If you can play it through your PC with good clean audio you are halfway home. You may also need to adjust the volume on the 396. Some fooling around with the controls is more than likely needed here.
ID Tracker II is certainly one program (and very popular, as well as being free), as the other poster mentioned. There are several others - BCTool (although last I heard that one has a bug with recording that hasn't been addressed yet...), Scan Control, the pro version of ARC396, ProScan and Trunkstar. All of these are linked on the 396 wiki
article (note anything in blue or underlined is a link).
73 Mike