Re: New Realtek Drivers improve the quality to some degree.
Johan and GavinLeigh,
Thank you for responding. Johan, I checked the link you provided and have to agree with you. There is still a bit of "static" or audio distortion detected after installing the Realtek chipset drivers (A4.03). Did you happen to check the ETonline.com link that I provided after having install the drivers. This webpage contains 21 small video clips. Of these, only three of the videos results in the "static" effect during playback. This may take some time to test, but could you or someone else confirm that the "static" is present in only the "American Gangster", "Dexter" and "Katherine Heigl talks" clips. These are the 10th, 14th and 20th clips shown on this page. The 10th clip has static throughout and the 14th clip has only a small static distortion while the Jennifer Carpenter is speaking. The 20th clip has one two static spikes toward the end. I have listed the text for each of these clips below and the words containing static are in bold and extraneous static between words is shows as 
. I know this may be a bit obsessive, but I'm hoping it will help.
I don't want to distract from the resolution of this issue, but I wonder if the problem may have been two-fold. 1) An issue caused by old chipset drivers that were not compatible with Silverlight and 2) an encoder/playback problem with ambient noise. You may notice that these three clips appear to have different audio quality. They are slightly louder than the other 18 clips.
Clip #10: Motion Picture Drama: 'American Gangster'
<John B.> Oh, I understand, understand. You know a man walks around with fifty thousand chinchila coat and never even bought me a cup of coffee. There is something wrong there. You pay your bills Frank.
<Denzel W.> I don't know what you...
<John B.> Do you pay your bills, I asked you.
<Denzel W.> If you are not getting your share, maybe you need to talk to the chief of police.
...
...
<John B.> Don't forget your card. Have a nice honeymoom.
<car door closes>
<Denzel W.> Let's go.
<John B.> Blows kiss. 
Clip #14: TV Actor Drama: Michael C. Hall - 'Dexter'
<halfway through clip>
<Jennifer C.> Did you hear that? Thirty bags. Do you know what that means? I means that there might be a new mass murder out there, way worse that the "Ice Truck" killer.
Clip #20: Katherine Heigl talks Golden Globes
<last quarter of the video>
<Katherine H.> ... though I'm disappointed that the night isn't going to happen. But umm, I would have been really awkward if I had been the only one there. You know..
<Steven 'Cojo' C.> 
I would have have been with you. 
I would have done you hair for you.
I played the same three clips on my HP laptop which uses the ALI M5451. Although the poor recording quality is still noticeable, the static type distortion is not found. The "knock me down" distortion appears to be replaced with less shocking but still annoying static effect on my ALC850 machine. I will reinstall my old Realtek chipset drivers (A3.89) to see if the full distortion returns.