Ok have abit more time to sit down at the PC , Christmas Eve = Hectic 
You mentioned you have connected something too JAUD1, thats the front panel audio connector normally just for relaying the Green headphone jack and Pink Microphone jack to the frontpanel.
Try unpluging whatever you have plugged into JAUD1 and connecting your headphones to the Green Jack on the back of the motherboard and see if it works, as If windows thinks the hardware is working and is configured to the right audio device, I doubt its driver's more likley hardware related.
I'm wondering if you do have the wrong thing connected the JAUD1 and that's causing issues (although most connectors are keyed to stop the wrong connector being installed)

You mentioned you have connected something too JAUD1, thats the front panel audio connector normally just for relaying the Green headphone jack and Pink Microphone jack to the frontpanel.
Try unpluging whatever you have plugged into JAUD1 and connecting your headphones to the Green Jack on the back of the motherboard and see if it works, as If windows thinks the hardware is working and is configured to the right audio device, I doubt its driver's more likley hardware related.
I'm wondering if you do have the wrong thing connected the JAUD1 and that's causing issues (although most connectors are keyed to stop the wrong connector being installed)