Since you didn't mention the phone model or a system, I'll use it's an android.
There are apps that record from the line and I used few, but all of them require root. If you have Cyanogenmod or similar to Wildfire phone, then I would suggest rVoix (been posted here:
http://evilzone.org/android/rvoix-the-call-recorder/) and recently I've been using "Total Recall" (available cracked somewhere) on my S2, which IMO was a crap software - ugly interface, weird controls, no turn exit option, so once turned on can only be turned off by terminating the process.
Also moved to Mobile hacking section.