I verified this, so its got nothing to do with Skype. This friend lives near by me, and we were in a Skype call, but I had Skype linked to just my Mic and not Line 1 so he couldn't hear the music through Skype, only when I played it in Gmod. So here I was playing music and thinking I was great, because I had my friend there and he was telling me the quality was crystal clear. I'm using foobar linked to Line 1, so the music plays into Line 1, but so does my Mic, and I have this set as my Default Mic on Steam and Gmod. Using VAC, I linked my Mic to Line 1, Line 1 to Line 2, and Line 2 to my Headset, so I could hear myself and my music. So, in short i did manage to get that working. I have been playing on an RP server and been trying to figure out how to play both music and speak through my mic using Virtual Audio Cable. So yesterday I thought I had struck gold and was happy out for a few minutes.