Windows 7: Audio distorted, tinny, sounds like its underwater or..

is almost completely inaudible.

This applies to everything except for windows 7 operating system sounds, such as alerts, or the startup jingle, or when I am playing halflife2/counterstrike the ingame sounds work flawlessly.

A weird thing to mention is that although the ingame sounds work, I can BARELY hear anyone on their microphones talking, i can only make out their speech when I turn my volume way up, resulting in my ears bleeding from the gunshot sounds.

Mp3s, CDs, internet media (such as youtube) all experience the distorted, tinny, underwater sounding sound. I have been in contact with ASUS tech support - they are useless. I have installed the latest Windows 7 updates, I have the latest drivers for the onboard VIA VT1708S audio chipset, and I have all the latest codecs installed (used the CCCP pack). I have tried using MULTIPLE media players, VLC, winamp, windows media player, etc, all to no avail - which isnt the problem since in game microphone from other users doesnt run through a media player anyway. Ive made sure ANY environmental or EQ settings are disabled JUST incase those are causing an issue.

Ive tried multiple drivers, although I am 99.99999% sure it is NOT a driver issue, as the same issues arise with, or without drivers.

I have tried nearly everything I, and many others on the internet have thought of, and all I can think is that it is some sort of windows 7 software communication issue. Like I said I am in contact with ASUS tech support, but I dont think its any kind of hardware issue, and they treat me like a complete moron telling me to try things that I have already CLEARLY stated to them that I have tried (I told them exactly the driver I had installed, and that I got it directly from their website, and in the response mail I got I was told to install the same driver I had said I had installed..)

This is really, incredibly annoying, and I cannot seem to find any solutions searching the net, I have SCOURED google to no end. Ive come across people having similar issues, but no real answer was ever posted in any of the threads I came across; I guess those people gave up and put a bullet through their heads.

I dont really expect any answers,, but yeah, im hoping.

Thanks to anyone who reads.