Found this on the Apple Discussion Board, thanks to Ron for this! Somehow the line out rate got st to 32,000.
“I found this in the Panther forum, and changing my sound out rate WORKED!
“Find your way to the Applications folder and open “UTILITIES”
OPEN THE AUDIO MIDI SETUP APPLICATION
SET YOUR LINE IN AND LINE OUT TO 44100.0Hz (mine was at 32000Hz, and I didn’t set it there).
ALSO MAKE SURE YOUR SOURCE IS SET TO LINE-IN AND LINE-OUT RESPECTFULLY, NOT DIGITAL.
Go to the Sound Pref Pane and slide your balance controls, this is when I finally got my audio back.
I use Sony SRS-0313 Mini plug speakers, nothing special but at least I can hear things again.
If anyone else has had the same problems, and this fixes it let me know I’m not losing my mind.