PROBLEM FIXED
Found the fix to the problem at
PC Hell: Volume Control - There Are No Active Mixer Devices Available
WOW didn't know it was so easy to fix.
I also didn't know there was a 'Services' part of XP.
1) Click on Start and Run
2) Type the following command and press Enter
services.msc
3) Scroll down to Windows Audio in the right-hand column and double-click on it, you should see a screen similar to this one.
4) Make sure the Startup Type is set to Automatic and click on the Start button under Service Status. The Windows Audio service should restart and the error with the volume control should be resolved.
I have volume now.
The Windows Audio was some how turned to 'disable'. Changed it to 'Automatic'.