Here are some updates on the stutter problem. Both solutions were picked up from the Windows 7 Beta Microsoft TechNet Forum.
You can change the speaker settings to 16 bit, 22059 Hz (AM Radio Quality) but you will loose some in the sound. If you have lousy speakers it won't matter.
The best solution is to download the conexant ac97-61410599.exe driver
file. Open this file using WinRAR (WinZip won't work). Extract camc6aud.sys and camc6hal.sys. Rename them camcaud.sys and camchal.sys (in short, remove the 6 from the filename. Copy these files to c:\windows\system32\drivers
Be sure to reboot the system so the new drivers will load.