No Audio Device - Solution
OK. I figured out an additional step.
For some reason, after I installed either SP2 or one of the other critical fixes, my audio devices stopped working. Uninstalled and reinstalled the hardware in device manager with no luck.
The audio device appeared just fine in the Device Manager, but in the Sound and Audio Devices Control Panel, I kept getting the "No Audio Devices" message. All options in this control panel item were greyed out.
Go to the Services, and look at Windows Audio. Seems that MS set the service to DISABLED. Enabled it, and all of my Sound options appeared!!!