Sound not working on Windows 7 guest

I am using Workstation 7.1.2 with a host and guest OS running Windows 7.
I Installed VMWare tools on the guest, and made sure the VM Settings use the default sound card with auto detect.

My Audio is not working on the guest, only.

I found a KB article on troubleshooting this problem at

http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1003425

I have gone through these steps, but for the driver update,
my system indicates (instead of Creative AudioPCI driver) :

Guest Device Manager / Sound, video and game controller:
    VMWare VMaudio (VMAUDIO) (WDM)

I checked to be sure the required services are running (Audio and PNP).

I ran the driver update for this, and it says I have the latest version.

When I run an MP3 audio file, I can see the sound modulation on the sound mixer on the guest OS, but no sound is coming out.

What can I do next?