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I may not be able to take a picture of the ICH5 however I could do some screen shots of the alsamixer very soon. I like running SliTaz live so Im shutting the box down sometimes today as I may need to move it. 
Thanks once again 
p.s. the image of the ich5 i googled matches mine exactly, pinkish, greenish, blueish in that order 
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Here is aplay output again 
tux@slitaz:~$ aplay -D hw:0,0 robot.wav
Playing WAVE 'robot.wav' : Signed 16 bit Little Endian, Rate 44100 Hz, Stereo
tux@slitaz:~$
Here are current screenshots of alsamixer 
http://imageshack.us/photo/my-images/822/alsamixer1.jpg/
http://imageshack.us/photo/my-images/838/alsamixer2.jpg/
http://imageshack.us/photo/my-images/836/alsamixer3.jpg/
As you can see I went on a unmuting spre in alsamixer and raised some levels 
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@Adnan, here is something worth trying.
Start alsamixer and tab to fields like 'surround', 'spdif/p', 'mono out', 'channel', 'downmix'. Once you are in that field you can use the UP/DOWN arrows to select different settings for that particular field.
I would try changing one parameter at a time and see whether you can get sound from the speakers. In particular, it is worth fiddling with settings for channel and downmix fields.
Your card has more settings than mine but everything else looks pretty much the same as what I have set to.
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Thank you everyone so much! I managed to fix Intel ICH5 sound issue
What I did was max out everything and unmute everything, sound seems to be coming out clear, so maxing out things doesnt seem like a bad idea after all 
Thank you everyone once again!
EDIT:
Here are final screenshots of my Alsamixer
1) http://imageshack.us/photo/my-images/824/25162656.jpg/
2) http://imageshack.us/photo/my-images/855/29465748.jpg/
3) http://imageshack.us/photo/my-images/11/66444641.jpg/
Happy fixxing! If anyone ends up having similar or some issue with ICH5 
EDIT:
Playing with alsamixer a little more, I found out that 'Master S' has a lot to do with sound coming out of this ICH5
EDIT: THIS ONE IS IMPORTANT
I have my earbuds plugged into the light blue jack! Which is the one all the way to the right, not the green one! I have a image i posted in one of my previous replays an exact image of what the back of my ICH5 looks like 
It does not work plugged into the green one!!! 
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I noticed that you have also changed some of the alsamixer field settings and probably this could have been the reason why you got it going rather than due to maxing out the levels. May be worthwhile to keep a record of the current settings and drop down the levels to a reasonable level just to confirm this.
However, I am baffled by the fact that you are getting sound via line-in jack! As I said earlier, I have a PC with a ICH4 and I have my speakers connected to line-out (green). I am sure you will eventually work out the reason but for now enjoy your music via the ICH5! Well done.
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I did find a few settings that did affect sound, sorta detecting exactly, lots of settings I dont know yet 
I did reboot and was able to get sound again by using same alsamixer configuration I showed in my previous replay with screenshots of the settings.
I noticed Master S and Channel, these two affect it very much. Main one it seems its the Channel setting, default is 2ch, but only works on 4ch or 6ch.
Seems to work just perfectly fine, Im sure it can be tunned 
Thanks once again!
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