I just got through building my first system (Whoo!!), but I can't get the front panel audio connectors to work properly. The headphone jack works, but I do not get a popup that it is connected. It also doesn't disable the rear panel speaker output (Lime Green) when my headphones are connected. Both these options are selected in the Realtek Audio HD Manager (I have AC '97 plugged into motherboard from Front Panel). It also does not pick up my microphone, but this is most likely because they are Earbuds with in-line microphone. Everything is set to AC '97 as well.
Rosewill BlackHawk Case
Corsair CX 750W
Asus P8Z77-V LE PLUS
8 GB (2 x 4GB) G-Skill Ripjaws Memory
EVGA 650Ti Boost Superclocked 1GB
You need to connect the HD Audio connectors in your case to the HD Audio connector on your motherboard. AC'97 is an old standard that is not used anymore and motherboards now use the HD Audio standard and that is the most likely reason why it is not working properly.