Type dxdiag in run from your start menu. Turn the Hardware exceleration all the way down on the tab Sound 1. This fixed the problem for me thanks to the wonderful people here at TELP  The sad thing is it used to run fine, then the sound just started to get screwed up one day. I have no idea why but this fixed it. The only real problem I have seen with it is that the sound gets screwed up in Legends of Might and Magic and sometimes mpegs dont run right on winamp. However, just turn the Sound 1 hardware exceleration back up and its fine.
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