It's been over the 30 day RMA time, as he hasn't been long graduated from college and got a new job so he never bothered taking the board back out to RMA it.
So far:
Yes, plugged speakers up to a different plug in the house on a completely different circuit and still same issue, but same issue with no speakers plugged in and just headset plugged in.
When the board was put in a fresh install of windows was used, then wiped clean and fresh install of linux was tried, then wiped clean and fresh install of windows again.
Same issue when the PCIe sound card was used (tried speakers only front and back, tried headset only front and back with card installed)
VLC the audio will stutter and cut in and out, watching twitch streams the audio will lag behind what's happening on screen pretty bad, youtube has lots of static / echoing and all seems to get worse as CPU load increases.
Read on a post earlier about someone with the same issue on a Gigabyte board, they disabled EIST and C1 in the bios and it fixed their problem. Told him to do that and so far at minimum it's still static and then starts getting lag as cpu load goes up.