Two problems (Pc in question is using XP)

1) I am using recording software such as Goldwave and All2wave to record from media files...It records but when I playback the recordings I get dead silence....any reason. I have a SB live C400 sound card and 10 min before starting this thread I updated the drivers, installed all the other updates but I still get no sound in recorded files.

2) When I record voice from a microphone the voice comes out so distorted and muffled that anything recorded sounds like the malebolgia chanting demonic prayers....any reasons?

Your PC is possessed you must force the demon out...
Or you could check what source the software is set to record from, i think you want 'what you hear' thats what it is with mine anyway.
For your second problem check the microphone conection make sure its firmly in, and check at what level you record from the microphone dont have it too high and keep it away from any speakers when you record.
These are just suggestions and it will prob be something completely different just keep messing about trying different things, its a great sense of achievement sorting something out yourself :m:

So I did hardware test in directX and I get this.

An error occured during DirectPlay voice setup.
The error code is 0x80004005

and then the message

The DirectPlay voice wizard failed with error code 0x80004005

I had/have a similar problem. I've been using MS GameVoice Share for awhile now, but last week I decided to copy a cassette tape onto my harddrive. I ended up having to change a setting or two (from Microphone to Line In) in the SB Live Value Play Control and had no problem copying.

The problem came when I tried to use GameVoice again. I connected to the chat session but the mic didn't work. Even after I changed the settings back. I tried the GV setup wizard (and dxdiag) and got the same error code:

"An error occured during DirectPlay voice setup.
The error code is 0x80004005"

Even after reinstalling GV, the Soundblaster drivers, DirectX 9.0b, I'm still getting the same error.

I've been all over MS's support site and haven't been able to find anything...

OK,
first if you have that volume icon in your tray, right click on it and clicl "Open Volume Control",
now, click on the Options->Properties-> now set the "dot" from playback to recording->click OK...

Tick the "Microphone" and then "Adwanced" (below it), if Mic Boost is on, turn it off. Thats it.

I have read an article on the internet regarding this problem and it says that if you have a mcafee antivirus/firewall installed in your computer, try to uninstall it first.