I have a similar situation but thisw routine didn't find ATA channels with windows drivers found. No changes were made....So I must have another problem on our Aspire ONE.....
" will try to find my way around device mamager and update the audio drivers."
That will likely do nothing. What works for me is to check the maker's web site for drivers, download such and install those drivers netbooks. The use of device manager and it's driver update button seems to be nothing but a DEMO feature of how nice things could be.