Missing/Clipped Sound Effects

I've had a problem since I started playing where sound effects of all kinds (hit sounds, swing sounds, spell sounds, character sounds) will either not play or be clipped short during combat.

I know this is normal when in a large party but I will have sounds not happen when there is nothing but music playing and myself alone in the party. I've tried setting my sound effects number in the config high and low but it doesn't seem to make a difference.

Are there any troubleshooting steps to fix this problem?