Here's another suggestion for anyone having this issue as well..
After following all of the below troubleshooting recommendations and having no luck, I decided to break things down to the very basics, that being my USB connection.
Obviously, if your USB drivers are under a lot of data transfer stress, devices can get kicked out. (if you have printers, scanners, cameras etc plugged in and running).
My issue was with my Western Digital "My Book" and its software called WDSmartWare. I noticed that even after unplugging the External Backup drive I was still having issues with the
sound clipping out and sounding somewhat distorted for 5-10 mins before it would drop audio all together. At this point I decided to look at my current processes. This is when I noticed
the WDSmartWare process that was running was taking a gross amount of system resources as per what my system thought was associated with USB use. After killing the processes
from the MyBook, I unplugged the Bose Companion 5 system from my PC, then plugging it back back in after about 30 secs. The sound popped right on, no issues at all. I have now
been able to play games, music, etc with no issues whatsoever. I have tested this for 1 - 5 hours without issue.
I am running Windows 7, 64 bit edition with a Phenom II, Black Edition Processor with 8 gigs of ram, and an NVidia GTX 295 CO-OP edition GPU.
Hope this helps!