I am sorry i wasnt sure if i answered part of your problem or not... meaning i am unsure you were trying to say you fixed the mute button or not....
my problem is similar to yours (Hardy) but is as follows
Pic #1 - shows that my network connection is wireless and that it is bridged to the LAN for my Xbox Live ... When connected to the Xbox everything is displayed fine the System Tray Icon is a Bridged Connection Icon.
Pic #2 - shows the System Tray Icon as a wireless connection as if it is not connected... I am not connected to the Xbox threw the LAN when this occurs.
Pic #3- shows that although the system tray network icon shows that i am not connected i am actually connected (bad connection in pic but besides the point)
Is there anything i can do to make it show the wireless connected when i am unplugged from the Xbox threw a LAN or do I have to disconnect the network bridge everytime.