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Amazingly enough, I actually remember seeing this issue before - but 965 was a long, long time ago and I only vaguely remember the nuances of the situation. If I am remembering correctly, the issue had something to do with the order in which you install the various driver packages. Make sure that the Intel INF Update package is installed first and that you have rebooted before going on to the other packages. Also, make sure that you install the audio driver last.
Sorry, this is the best I can do considering how long it has been; I hope I am not brain f@rting on the solution.