A few people with Asus sound cards in Windows 7 are experiencing this issue. We've been told one of these two options should work:
1. Try right-clicking the Home executable, and choosing "Run as Administrator."
2. In the Asus driver menu, you must turn off the "Xear 3D" and the "SoundRadar" modes. (Submitted by K4on)
Another user notes: "I had the problem when using the Dolby effects processor with the Xonar features apparently turned off. You can only run one or the other but it seems leaving the Xonar settings turned on while using the Dolby processor also prevents Game Maker from detecting the audio device."