Windows 7 Ult.x64 w/ Realtek ALC665 StereoMix NOT WORKING (used for external Mic?)

I have updated realtek driver to v6.0.1.6662 6/2012, however updates do not seem to change anything. My lappy has an internal mic, but also an external mic plug (which can be re-purposed, but is originally a mic plug).

The internal mic is connected to ATAPI internal port, that much is clear, however the External Mic (which should be Stereo Mix as I don't see any other recording devices besides the two) show NO port in the properties. See attached image. This precludes me from using an external Mic in the Mic Jack, and I am forced to use the internal Mic which sucks for anything but Skype.

There is some trivial advice going around the web on this issue, I am just going to cover it here, to prevent repetition.

1. No recording device has "listen to" enabled
2. None of the jacks have been re-purposed
3. None of the recording devices are enabled as sound/communication devices (this repurposes them)
4. and yes, the Mics (both) are unmuted (how trivial is that?)
5. It doesn't matter which Mic I set as 'default recording device' the stereo mix never record, only the internal mic
6. enabled/set as default/recording levels, none of that is the problem, tested
7. There is a conspiracy theory going around that RIAA 'forced' Realtek to cripple StereoMix so that you can't record what you play on your computer, but that sounds too crazy (as all conspiracies do)

Finally, to underline my problem, it is not about the Stereo mix, per se, but using it (or anything else, but what?) to connect an external pro Mic (with computer plug, not XLR) to the mic jack on my lappy.

It shouldn't matter which laptop is in question, since all realtek drivers of ALC665 seem to have the same problem, but it's Alienware M11X R3.

cheers,
G2