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Well it seems I have solved my own problem. Turns out the 360 controller I was using as my controller during gameplay is a faulty one. When I plug it in, my computer sees it not only as a controller but also as a 360 headset so the sound was trying to play out of the controller and not my speakers :P. But all is well since I have another controller I can use.
Anyway, thanks for the replies.
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