Instead of commenting out the entire line, try changing
power_save_controller=N to power_save_controller=Y (or just remove the
power_save_controller=N string completely), then reboot.
** Changed in: alsa-driver (Ubuntu)
Status: New => Incomplete
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[Ubuntu 9.10] Audio device: Intel Corporation 82801G - does not work
https://bugs.launchpad.net/bugs/480318
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