You see, I just ran the Driver Reset tool and I got no errors detected. I just also ran the set-up screen and went throught the diagnostic tool again for sound. Everything passed up the test.
However, everytime I try to play a song from windows media player it says Windows Media Player cannot play the file because there is a problem with your sound device. There might not be a sound device installed on your computer, it might be in use by another program, or it might not be functioning properly.
This is nuts!
One of the weirdest errors indeed.
So in other words, my computer recognizes the audio hardware, but somehow the drivers (even though they are certified and have no problem), don't seem to work at all.