I was having the EXACT problems described in thread. I have really #$%& Sigmatel Audio in my laptop. I did some searching and found it has a PATHETIC memory cache. Completely inadequate for buffering sound. Thank you Dull for endangering my $%&$ with your explodable batteries and endangering my sanity with your crappy onboard sound memory
TO FIX my problem I ran "dxdiag" from the start menu and turned off ALL hardware acceleration for DirectSound. So that it runs purely from software Clicking is gone completely, but haven't tested much. If it causes any serious problems or crashes I'll edit.