Ok, so I create a group, no voice. I go into options to re setup voice and my pc freezes on the voice setup screen. I have to reboot the computer. I can change the settings without a problem as long as I'm not in a group.

System Specs:

Abit IP 35 Pro Motherboard LGA 775 Socket
Intel Core 2 Duo E7200 Wolfdale 2.53GHz LGA 775 65W Dual-Core Processor
A-DATA 4GB (2 x 2GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400)
ASUS EN8500GT TOP/HTP/256M GeForce 8500 GT 256MB 128-bit GDDR3 PCI Express x16
SILVERSTONE ST70F 700W ATX12V Modular Power Supply
RealTek 7.1 built in Surround Sound

Hmm. There seems to be some incompatibility with the VoiceChat and your setup. There's not much I can say about how to help right now.

Does audio in work for other applications (i.e., Windows sound recorder doohickey)?

Teamspeak, Ventrilo, Windows Recorder, and Sam Broadcaster all work fine for voice communications outside of vendetta. I've even talked to people while on vent/ts and been playing vo. The communications of vo is my issue.