Yes, I've rebooted about 20 times. And other users demonstrate the same. I've deleted the main Library Caches, and every sound thing I can think of to reset this. Actually the sound is not distorted anymore on the external sound card (this might have been a Audio Midi conflic) - don't know. I reset the Audio Midi (to conflict to test it) but it still worked fine.
Internal Speakers still don't work in Sys Prefs, Sound, Output.
Sys Prefs, International, Formats still doesn't work. I can't find anything anywhere relating to this. Any ideas anyone? Where is International?