Try this:
http://forums.macrumors.com/showthread.php?t=573822
It's not a 10.6 problem, rather it appears to be a stuck audio jack problem. A variety of fixes from putting a toothpick into the audio jack to a jewelers screwdriver and shorting out some contacts. Ugh.
Another post was : The audio jack is attached to the motherboard, which requires replacing for a permanent fix. Took mine into an Apple store and it was fixed the same day.
Honestly I think your audio jack is stuck in digital mode instead of analog mode. No idea how it happens. The tooth pick or small paintbrush sounds like the best attempts before heading to Apple.