I've had three different systems running Windows 7, two using home premium and this one using fresh windows 7 ultimate. A plethora of drivers, the only time I have never heard this dynamic range compression going on when there's loud or alot of loud audio, is if I'm using ASIO, Kernel Streaming or OpenAL with a creative card. This of course limits to single application only and because it bypasses the windows audio service, if that thing is loud it will distort, it will also clip traditional windows audio where as, if everything was kept on windows audio, the clipping never happens but you get harsh dynamic range compression as it tries to prevent clipping situations.
It is defiantly something to do with windows 7's audio service. There's alot of stuff you can't touch in it. I've even noticed CPU usage in audiodg even with "Disable Enhancements" checked. And this was on two fresh installs... Without even installing a vendor specific driver and making use of microsoft's generic UAA driver.
This is one of the many reasons I wish I could of stayed on Windows XP, but Microsoft sabotages their old OS's all the time, what with Visual Studio not being allowed to target old windows platforms for whatever arbitrary reason other than their whole "planned obsolescence" marketing picket.
On topic though:
I'll be damn surprised if Windows 9 does something right, but so far it just looks like they're playing stupid with their customers. The start menu is one thing, what goes on under the hood is another issue altogether.
I still ask myself, how could they be confused why customers opposed the loss of the start menu and hated the metro interface? Why would someone at microsoft ever come to the conclusion that "nobody used the start menu anymore"? How many people here have you made use of the "Pin to start menu" thing windows 7 added that makes the start menu a hell of alot nicer?
“I am the dragon without a name…”
― Κυνικός Δράκων