Windows 7 - Stereomix enabled despite being disabled... frustrating and baffling.

I have a very serious problem with my sound after using webcam option in Skype.

It started off after using Skype, after that it seems to have enabled Stereomix as a default for every program I use (Skype, Teamspeak, Ventrilo). My friends hear all my PC sounds crystal clear like my music, games and even themselves talking loops back. It is not a problem with my mic feeding it back as I have manually disabled my mic and even removed it from my headset. It is definitely defaulted to stereo mix some how. The worst thing is I can see stereo mix in my windows 7 audio devices and it is disabled although somehow it is overwriting that and it might be hardware related. I have tried enabling it and adjusting the levels but this doesnt work, I have also tried system restore and even removing and reinstalling sound drivers, I have also tried different jack inputs and a USB headset input... everything is just recording all my sounds. I am so annoyed its unbelievable. Now I cant use any voice program without everyone getting annoying.

If there is any more information you require then feel free to ask.

Please help