Windows 7 Home Premium x64
Intel Core i7 2630QM @ 2.00GHz
AMD Radeon HD 6770M

Under device manager this is listed for sound...

High Definition Audio Device

For example, in Minecraft SP, Planetside 1 MP, and Portal SP. When a gun is shot, door opening, player falling and hitting ground, NPC talking, etc the game may stutter quickly or freeze for a second or three. I disabled both sound devices in device manager and when a sound would normally happen the game runs smoothly. As far as my knowledge goes all of the drivers are up to date but it is possible that something may not be.

Images from minecraft diagnostic view. These types of events also occur in planetside and portal. This also occured during the Diablo 3 beta, the spikes/lag made the game completely unplayable. Didn't have enough time to attempt some kind of minor diagnosis because the beta ended.

Exported Data from System Information

Disabling All Sound Enhancements in Control Panel-->Sound
Disabling allowing exclusive control of device in Control Panel-->Sound
Tried enabling verticle refresh
Tried reformatting

Sort of works:
So far, when running fraps the game will run perfectly.. I'm currently using this as a temporary fix