Uhh that means you sound device is working, Though i think the audio is being transfered to other ports.
It happened on me before, I plug in my HDMI Cable and there was no sound from the tv but instead it came from the onboard laptop speaker.This may be due to multiple audio devices and the one set default is the one that is not being used.
Give me some time for me to check how i help to fix it, i think that might be your problem since your audio device is working.
Can you check in your task manager that audiodg.exe is running?You have to check see all processes to see it.
NOTE: Oh by the way your system restore might be corrupted ._.
You computer had been infected with a virus?
Last edited by oXdacyXo; 07-15-2010 at 08:32 AM.