I had re-routed my audio to a digital audio device.  now I have switched it back to my speakers.  all outputs go to the master bus, which then has its output go to the speakers.
 
under Preferences, I unchecked the digital output and set speakers as the only output.
 
still I get a message that the digital audio output was disconnected and do I want to re-route the output to an available device.
 
I can't see any setting or place where the digital output device is.  why is my project still referencing this removed device?
 
thanks.
(X2 Producer)

Need make and models of the devices. What driver mode? Computer specs? Not enough info to make a guess. 

windows 7, 64-bit. 

output to speakers is through Audigy.  removed digital device is ATI HD audio rear output. 

driver mode - WDM/KS.

playback set to Audigy.

It's possible Windows is still using the other device as the default sound device. Try switching to ASIO mode and make sure only the Audigy is the only device selected in Preferences-Audio and Preferences-Driver settings.

tried.  still same problem.

Get rid of the Audigy. They're no good.