I see this has been addressed, but with people who have a different configuration then me, so I will post what I get when I do " lspci " in terminal.

00:00.0 Host bridge: ATI Technologies Inc RS690 Host Bridge
00:02.0 PCI bridge: ATI Technologies Inc RS690 PCI to PCI Bridge (PCI Express Graphics Port 0)
00:07.0 PCI bridge: ATI Technologies Inc RS690 PCI to PCI Bridge (PCI Express Port 3)
00:12.0 SATA controller: ATI Technologies Inc SB600 Non-Raid-5 SATA
00:13.0 USB Controller: ATI Technologies Inc SB600 USB (OHCI0)
00:13.1 USB Controller: ATI Technologies Inc SB600 USB (OHCI1)
00:13.2 USB Controller: ATI Technologies Inc SB600 USB (OHCI2)
00:13.3 USB Controller: ATI Technologies Inc SB600 USB (OHCI3)
00:13.4 USB Controller: ATI Technologies Inc SB600 USB (OHCI4)
00:13.5 USB Controller: ATI Technologies Inc SB600 USB Controller (EHCI)
00:14.0 SMBus: ATI Technologies Inc SBx00 SMBus Controller (rev 14)
00:14.1 IDE interface: ATI Technologies Inc SB600 IDE
00:14.2 Audio device: ATI Technologies Inc SBx00 Azalia
00:14.3 ISA bridge: ATI Technologies Inc SB600 PCI to LPC Bridge
00:14.4 PCI bridge: ATI Technologies Inc SBx00 PCI to PCI Bridge
00:18.0 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] HyperTransport Technology Configuration
00:18.1 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] Address Map
00:18.2 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] DRAM Controller
00:18.3 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] Miscellaneous Control
01:00.0 VGA compatible controller: nVidia Corporation GeForce 8600 GT (rev a1)
02:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168B PCI Express Gigabit Ethernet controller (rev 01)

This is what I get from "lspci -vv" for my audio.

00:14.2 Audio device: ATI Technologies Inc SBx00 Azalia
Subsystem: ASUSTeK Computer Inc. Unknown device 8249
Control: I/O- Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Step

I am about ready to shoot myself, any help will be greatly appreciated. I have system sounds, like the beeps, coming out through my speakers. I have a 5.1 Surround Sound Logitech Speakers. If I backspace, when I can't anymore and it beeps through my speakers. Yet I get no other sounds, literally nothing else.

UPDATE:: I was messing around with the alsamixer, and I have a logitech microphone hooked to my computer. I am receiving the sounds from it, but I still have no audio from anything else, via web, or any sound testing. I guess this is a good thing though.

In addition to turning up the volume levels in alsamixer, go to: system > preferences > sound on the Ubuntu top panel menu. On the devices tab try changing everything to "alsa" or "autodetect". Then click the "test" button to see if you get sound. If you do then try playing a media file to see if you get sound. If you still have no sound then try working you way through this sound problems troubleshooting guide:
http://ubuntuforums.org/showthread.php?t=205449

And welcome to the LQ forums!

Sadly, I have tried all of that already. Failed to mention that in my initial posting. I tried that guide before, the whole thing, had absolutely no luck. Messed with the alsa mixer,and cranked up and unmuted every type of volume there was.

do this then sudo aslsaconf then let it do it's thing find your card.then when done type alsamixer and make sure it is all un muted then do alsactl store. then sudo nautilus go to //etc/init.d/ and make sure alsa-utils is set to run as a program or executable.
when your done with this go to your preferences and sound set them to use pulse alsa or auto your choice. last but not least the little speaker in the top right corner right click it and make sure all is good. cant wait to hear from you all fails reinstall esd and pulse audio.