Yet Another Realtek / Sound Crackling Issue

Well guys , after MUCH reading on the tinterwebs ive noticed that there are alot of posts about 'crackling' sound and sound drops with realtek drivers and windows 7 on some machines. And it seems like im also one of the unfortunate that its happening to Heres the scenario.

Installed Windows 7 Ultimate x86 , Custom Clean Install - All drivers installed Apart from Realtek HD Audio Driver which was installed after the installion completed.
When the computer makes any sounds the crackling is like somebody is crunching a packet of crisps in there hands.

Clean Install of Vista Utimate x86 , Intalled ALL drivers and had 0 Problems on vista.
Decided to try the 'Upgrade' Method as it would use all my old drivers and hopefully solve the problem. Well the upgrade took a bit of an EON but in the end completed succefully , And seemed fine until i turned on the sound.. This time the crackling was just as intense if not more.

---- Update :: When i go to the Sound configuation to use the 'test' function. I notice that Microphone is a full green bar and sometimes dips to 9/10 then goes to 10 again. As if something is talking through a microphone ---- Update 2 :: After going to the Microphone properties i enabled 'Listen to this device' and omg the sound was excrutiating , it made my son scream then burst into tears. So im guessing theres a problem with the jacks registry? As its FINE on vista. ----

Heres a rundown of the system

Higrade 15.4Inch Laptop M760S
*Clevo W760S Chassis With a HiGrade Sticker*
Latest Drivers From Windows Update / Higrade / Clevo / SiS are in.
GPU Driver - SiS Magic 3
Sound Driver - Realtek HD Audio Codec
Installed RAM - 2gb

If needed i can post an Everest log of the statistics needed.

What im looking for is any insight on what on earth this can be. As all the posts ive read seem to go nowhere and have no valid reasoning. Whether its a forums post or a blog post found on the tinterweb.