squeak_D
If You select 'PC speakers' as output it should send the sound signal to internal PC speaker, and not to the ones connected to Your PC. So You should select different destination like 'Direct Sound' or something like this.
Have You checked configuration in Cakewalk Express, if it's anything like Cakewalk Pro 7, then there are lots of chances to make mistake (quite complicated).
[This message has been edited by kalimero (edited 11-08-2008).]