The fact that the hardware audio is greyed out implies that it's not supported with her particular soundcard (which would make it a pretty old card, but it's not unheard of), and therefore, there's no choice to select/de-select it. However, I would think this means the hardware acceleration is not the problem, as it wouldn't be using that setting regardless.But, if you're really sure it's related to the hardware audio, you can run dxdiag.exe from the startmenu, go to the "sound" tab, and move the "Hardware Sound Acceleration Level" slider all the way to the left. This should tell you whether or not it's actually the issue, so long as it's not the fact that just the setting itself is causing the error.
Could also be an issue with whichever build of directx she's using too, I guess.