Buried in the bill, however, is a provision that would effectively require music webcasters to use DRM-laden streaming formats, rather than the MP3 streaming format used by Live365, Shoutcast, and many smaller webcasters (like Santa Monica's KCRW and Seattle's KEXP). The streaming radio stations included in iTunes also rely on MP3 streams (since Apple isn't about to license the Real or Microsoft streaming codecs).
If you want to restrict recording of XM or Sirius - fine. Webcasters already pay royalties, and are severely limited in the kinds of services they can provide by the DMCA. There's zero need for further restrictions. Basically, this just hands over the current batch of webcasting formats to Microsoft and Real, completely shutting out the free, open source webcasting of icecast and others until they can develop streamable DRM formats.
Of course, what does this do to things like podcasting and other trendy media services that are now mainplace? Way to be five years behind the times...
"Those of you who think you know everything are annoying to those of us who do." David Brent, The Office
"Oedipus ruined a great sex life by asking too many questions." Stephen Colbert, The Colbert Report
In doing a quick search it seems like it's most likely a sound card driver issue. Try both the HP provided driver and the driver/codec from Realtek's website to see if that helps. Seems a lot of people have fixed their problems that way.