Man, that took longer that I imagined. Made me remember 1994, Windows 3.0 and a Creative labs of 128 bits sound card that I bought for a small fortune. 
 Here it goes: 
 gksudo gedit /etc/modprobe.d/alsa-base.conf 
 Add this to the end (if you do not have it there yet): alias snd-card-0 snd-hda-intel options snd-hda-intel model=touchsmart 
 Reboot! PS: Before I did that only the headsets were working and no inputs.