User config problem according to previous comment, closing. Feel free to reopen if you can generate a broken .asoundrc from an Ubuntu config tool
** Changed in: gnome-applets (Ubuntu)
Sourcepackagename: gnome-applets => alsa-utils
Status: Needs Info => Rejected
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in edgy beta 1 gnome sound panel applet has no effect
https://launchpad.net/bugs/63649
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