Also VLC might already be capable of transmitting the flawlessly created sound from the guest to the host. This is actually something that could probably be developed by a third party. Maybe VBox needs to borrow some ideas, maybe making an audio driver that communicates over a TCP stream instead of w/e guest->host communication they are currently using. The workaround for me is to RDP into Windows 7 from the Terminal Server Client within Ubuntu. I have verified that the Audio hardware emulation is perfect. But I knew it had to be some kind of virtual box guest->host communication issue maay just not have the proper priority.
I was having the choppy sound issue, It went crazy anytime I did anything graphics or cpu intense on the linux host even with virtualbox minimized which makes sense. I am using Windows7 圆4 guest on Ubuntu 10.10, I am using Windows for Visual Studio / Adobe and subscription music services.