1

I have tried many settings and can't get the bluetooth recording to work.  Is it possible?  I am running android ICS 4.0.4 rooted.

2

Galaxy S3 SGH-I747 uses the MSM8960 chip, the hardware supports bluetooth recording but the ROM doesn't support it.
Now that you have rooted your phone, please enable the "Change Audio Controls" option in the app to fix the problem.