ok now it gets interesting (I'm on the 64 ver btw so I have 4Gb of ram now)
so what I was doing before is that I hoking up my PC to my HDTV via DVI to HDMI dongle I bought today. Now back when I was using the XP SP2 this morning with the HDMI cable the sound was still working from the TV speakers now with windows 7 it's not (like I said only the headphones work), so I unplugged the DVI to HDMI and replaced it with a DVI to VGA dongle that came with the GPU and whata you know the sound works now from the TV with Windows 7 !!!!
so I think there is a problem between the HDMI to TV + the Audio wire. I think either the System or the TV thinks that both the sound and picture should come through the HDMI and it's blocking the Audio jack or whatever (like I said the XP didn't give me that problem even with the HDMI)
I'm gonna try to figure out where the problem is whether to disable the HDMI or something and see if I can fix it, like always I'm open to suggestions 
