Nope, it still does not automatically switch over, and I did not change anything. I still see that I have to do it manually, but if it could automatically switch, it will make my life simpler.
I tried out the Razer Surround and didn't really like it that much, so I uninstalled it, now I believe that it messed up how I want audio to be. When I connect my Tritton headset (USB) to the computer, I can hear skype sounds and my friends talking, but I can't hear games or videos on the web...