I have seen that sound problem before, a couple of years ago.

In the end I had to revert ClanSound from the 3.0 branch to 2.3 as a temporary fix for the machine I was targetting.

On that machine, it ended up freezing the pc, requiring a reboot.

Unfortuntely, I didn't have time to find where the problem was.

It is interesting to know that your windows 7 is 32bit, that may be a clue.