I'd try installing ASIO4All. It's a driver that is designed to make crappy soundcards less crappy. It won't necessarily improve sound quality, but it will make a cheap soundcard run better and solve some technical problems.
I hesitate to recommend Behringer products because of my poor experience with them, but they do have a tiny little audio interface that should work for you.
Behringer U-CONTROL UCA202 USB-Audio Interface
Buy Behringer U-CONTROL UCA202 USB-Audio Interface online at Musician's Friend