Technically it's your sound card that is not being detected (or a glitch.. whatever). Your computer can't "see" your speakers.
I would have you test your speakers but the error you have makes it obvious it's a sound card issue.
There could be three problems:
1) your sound drivers aren't installed
2) there's a major glitch in software
3) there's a hardware conflict
Solution:
1) As said, try removing anything that looks like drivers (look for your old drivers too) from the Add/Remove part of the Control Panel
2) reinstall the current drivers (check their web page for the most recent). Ensure you get the EXACT version of Windows (i.e. "Windows 7, 64-bit").
3) Unfortunately if that doesn't work it's difficult to recommend anything besides reinstalling your Windows.
*Get in the habit of using software like "Acronis True Image" to make an image of Windows (your C-Drive actually). I made one after I installed and Activated it and another after all my apps, driver and settings were configured. Then, if you have problems you can save any important information (like e-mail etc), RESTORE your latest IMAGE then restore your information and you are back up and running. It's a real time saver.
I wish you luck.