So, it would seem that nobody has a solution to this issue

......
But, I do!!
First I tried Ubuntu, same thing but with unpredictable / unreliable configuration of the multi use jacks. And.... still no line in signal heard on the outputAnd that is this:
1) Turn off PC
2) Remove Case
3) Install SB Live sound card
4) Replace case
5) Turn on PC
6) Go into BIOS and turn off
Crappy built in Realtek sound card with cheap unreliable "multi use" jacks (software configurable)
7) Reboot into "WOW, I can hear sound from my TV card, Incredible"
Next, too reinstall Pardus over Ubuntu.
OK, so my vent is now complete, and sorry for it... I have never been a fan of CPU cycle robbing peripherals, and have always used plug in controller based cards when I am able. This issue could very well have been a driver issue but strange how the line in mixer saw the signal, there was absolutely nothing visual that I could see in the configuration that would have out up a road block to me hearing it with own two ears. The only thing that stinks is that I had to give up a slot I had used for my SCSI card in favor of the sound card.
- Hunter