Ok, let's comment out both hw in the pulseaudio config:
Also, are you running the pi headless or with a HDMI monitor attached?
Code:
sudo nano /etc/pulse/default.pa
### Load audio drivers statically
### (it's probably better to not load these drivers manually, but instead
### use module-udev-detect -- see below -- for doing this automatically)
load-module module-alsa-sink
#load-module module-alsa-source device=hw:1,0 <<<<<< COMMENT OUT THIS LINE AS SHOWN BY ADDING A # IN FRONT
#load-module module-alsa-source device=hw:2,0 <<<<<< COMMENT OUT THIS LINE AS SHOWN BY ADDING A # IN FRONT
#load-module module-oss device="/dev/dsp" sink_name=output source_name=input
#load-module module-oss-mmap device="/dev/dsp" sink_name=output source_name=input
#load-module module-null-sink
#load-module module-pipe-sink
Also, are you running the pi headless or with a HDMI monitor attached?