Audio issue with a game

I'm starting Fable III under Steam, and having some issue with the audio. I have a pair of headphones plugged in, and Fable 3 is the only game that has this problem.

the audio will kick out from the speakers and nothing will be fed to the headphones. I'm confused. Once I exit out, then under the audio icon in the taskbar I get "communication headphones" and next to that "Speakers and headphones."

I've tried disabling one only to have the other not work, and it's just confusing.

anyone have the same issue?