Lower the mixer volume and raise the computer master volume. You are overloading the input somehow.
Use the variable audio output from the source. Lower the source volume way down, raise the volume of the computer. The audio coming from the source is raised too high and is overloading the computer input.
You never said what the audio source is. (model number of TV)
Thanks for quick reply, my audio source is, any sound generated on my computer IE: CD player, playing MP3's etc. A TV is not involved at all. I have tried All volume settings as you suggested as well as following Windows trouble shooter.