This is the architecture of Win7 audio
As you can see all output is routed trough the audio engine wit one exception: WASAPI in exclusive mode. The audio engine is the one doing the mixing, re-sampling, etc.
Using exclusive mode can improve the sound quality but it looks like your hard ware can only play 48 and not 44.1, the native sample rate of CD’s.
You might try WASAPI in exclusive mode, no SRC will be supplied.
If this fails it is probably because your hard ware don’t support 44.1
You might try WASAPI non exclusive using the SRC of J River or DS (Direct Sound, Win7 default) and check if you hear any difference.
If not I recommend DS for a hassle free experience