Ok, thank you for the reply Treefrog07. I contacted DFI technical support and they told me the same thing, I asked them to be more specific of which driver I needed and they were. I clicked around the realtek software and I got it to work. I also noticed that I dont always have to use my headphones with pc-phone, but just in case someone complains about echo I am ready.
Izzotheschizo - do me a personal favor? If the drivers fix the issue, or if you find some other fix, post it here? I always thought that the redirection of the output was hardwired / hardcoded into the motherboard.