*** This bug is a duplicate of bug 178895 ***
https://bugs.launchpad.net/bugs/178895
I had the same problem on Hardy.
Then I removed jackd <sudo apt-get remove jackd> was giving error so I used
synaptic. And changed Audacity playback to OSS and recording to ALSA. It works
now.
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[Hardy] audacity fails to playback a sound file due to no device
https://bugs.launchpad.net/bugs/202791
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