Okay! I found it guys. It seems that many people are having the same problem. I've had extreme computer experience for years, and something as simple as this, I could not figure out. This bugged the hell out of me so I spent well over 2 hours figuring out a solution. Here it is. I had the exact same problem, as I was trying to get the sound from my Xbox 360 to play through my computer speakers because I have a good sound system with my computer. So, right click on your volume, then open recording devices. Double-click microphone, and then click properties, then click Change Settings, and then click the driver tab, and then click Update Driver. This will download the latest driver for Windows Vista Volume. After it downloads and installs, restart your computer and then it will work fine. If you have some computer knowledge, this should be no problem as long as you follow the instructions exactly. You're welcome guys!