This error came up when I was trying to play song over winamp. I checked the sound drivers and they all were installed properly. Then I came across this post over winamp forums which mentions the issue specific to winamp and how it can be resolved. Following are the steps to resolve this error –
2. Ctrl+P (for preferences)
3. Plug-ins > Output
4. double click ‘DirectSound output’
5. Driver tab
6. make sure the device in the drop-down list correctly reflects your soundcard
It worked for me and hope it will help others as well. For more details and alternatives to solve this error, you can visit the above mentioned article.