FIXED!
Oh my god, you wont believe what I did to fix it. You know what I did?
....I installed the sound card drivers. Yes.. you heard right. I havent installed them yet since I just formatted and havent planned on using the speakers for a day or so. Then I figured; well, you know what - what if this is the problem? I shrugged it off since I didnt think installing a sound card driver would make MTAVC talk to Vice.
So, after all these hours.. I figured t'hell with it, its worth a try. So it works. Now, guys, if this happens to you.. install those freegin drivers! Perhaps you guys should put this in the Readme.