Output to multiple devices similtaneously?

Under XP, when I played an MP3 it would come out of my headphones and my SPDIF port to my AMP at the same time. Under vista I seem to have to choose and keep changing them manually (setting one as default) . Also, when I change them, it doesn't seem to take effect till I restart that application, mp3 player, movie player or whatever.

I seem to have similar issues with mic vs line-in. and switching between them doesn't always seem to work if in use and Mute options also seem to not kick in.

I read some scare stories about DRM but I'm not sure that this is relevent or not .

In XP, this just worked. sound would go into the IN's and come out of the OUTs and could be muted where needed. Does this work differently now?