yes that is a soundcard so it may be that its stopped working and needs replacing, it would be where id start and if not im sure someone on this forum will be able to help allthough its probably a hardware issue.
AC97 can be implemented on the mainboard (browse through the mainboard manual to see). It still could be a driver issue. Try if Windows Update suggests new drivers, or try to find new audio drivers for your mainboard. Some PC manufacturers have a driver download page where you can lookup your PC's model. You could try a stand-alone driver, but if the AC97 is indeed implemented on the mainboard, it could fail.
Go to Device Manager->Sound, Video & Game Controllers. Try to find your Audio Card listing there. Try to uninstall that & restart the computer. This will try to fix if the Drivers are causing an issue. Of course, make sure that you have the Drivers CD of the computer that was supplied by the Hardware Manufacturer handy, just in case, becuase XP OS would try to reinstall the Drivers. But any ways have it handy before uninstalling
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