A few days ago my sound stopped. I had to bump the volume to the max to hear any words at all, and it came with a lot of fuzz and static.
I tried restarting, reinstalling drivers, and even reinstalled win 7.
I tested the speakers on another device and they work.
I tried plugging headphones into the front audio ports and no sound at all.

What does it sound like the problem is? (lol pun)

Try a Linux live CD to exclude Windows problems. Check the internal connectors, like the one to the front audio ports, but also other cables while you're in there. But I'd say it's a good chance that your sound is fried.

You've got many audio ports on the mobo back panel...have you tried the others? I don't remember if the ADI chip on the P5B lets you assign ports on the fly like Realtek does....at the minimum, you could plug in the headset to the rear port and see if it works...or try to reassign speakers to some other ports and see if they work. Or, if you have a TOSlink cable around - try hooking that up to a compatible device and see if it's the analog output chain that's died or the whole enchilada.

Did you look in the Device manager to make sure the audio device was seen by windows as working properly?

Did you try the mic on a headset to see if the input side is working? Most VOIP programs will show a sound level bar for mic volume - so you can see if the mic is working.

I tried the other ports-no sound.
I haven't tried the microphone port yet but i cant find any mics around the house.

At this point its probably just dead. What are some good sound cards out there in the sub $50 range?
I never researched sound cards since i just used the onboard.
I have a 2.1 speaker set using just the regular green input jack.

Modern soundcards and chipsets no longer have an onboard amplifier. In the BIOS you could try switching from HD Audio to AC97 or any other settings that it allows on channel setup. Maybe on one of these settings something might work again.

If hardware has gone on the motherboard I'd be a little worried about the rest of the motherboard and whether or not something else might go.