If you started getting "No audio output device is installed" error after using sleep or hibernation mode, you need to install the Update for Windows Vista KB929685:
Quote:
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Originally Posted by Microsoft
Install this update to address an issue
that may prevent high-definition audio devices from initializing
after resuming the system from a sleep or hibernation state.
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Restart your computer after installing the KB929685 update. You may also need to re-install the driver or remove the driver and restart OS after installing the KB929685 update.