acbus1 - If you check the audio driver properties, it should have a "compatibility" tab. There should be options to run the program in an earlier version for compatibility. Have you tried rolling the driver back to an earlier version?
I think all the new upgrades and security packs are making Windows OS's into a nightmare.
I've just done a clean install of the latest Windows 7 (on a new HDD), and my Realtek ALC889A audio drivers refuse to work, so I have no sound. I try to repair the driver and it tells me there's an incompatibility issue.
Checked the MS Windows 7 compatibility site, and it tells me cheerfully there's no compatibility problems with my Gigabyte MB. BS there isn't.
I've downloaded the latest audio drivers from Gigabyte... still no sound... rolled the drivers back... still no sound... tried earlier versions for compatibility... still no sound. I'm tearing my hair out here and get no joy from anywhere.
I would suspect a "security" update in the SP3 pack could be causing the conflict for you.
As for Windows 7, I've never downloaded such a "buggy" OS system in all my life...