I have this problem as well, on my Compaq C300, which has an Intel
"82801G (ICH7 Family) High Definition Audio Controller." The workaround
I've found on the ubuntu forums goes like this:
1. From the Default Gnome Panel Menu, click on System --> Preferences -->
Sound.
(This should open up "Sound Preferences" with the "Devices" tab
selected.)
2. In the "Devices" tab, under "Default Mixer Tracks," make sure "HDA
Intel (Alsa mixer)" is selected.
3. Below that, make sure PCM is selected.
To make your gnome-panel Volume Applet control PCM:
1. Right-click on the Volume Applet.
2. Select "Preferences"
3. Make sure "HDA Intel (Alsa Mixer)" is selected.
4. Select "PCM" from the list under it.
--
Intel ICH5 audio: master volume control ignored
https://bugs.launchpad.net/bugs/159404
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