Alright, so I came upon another issue (the sleep problem isn't resolved either): I am not getting any USB audio. My Logitech headsets when connected to the front USB ports do not yield any audio output. The device doesn't appear for selection in the Audio settings pane in System Preferences. It doesn't show up in the system profiler either. Other USB devices are working in the same ports so it's not an issue with the ports. Now this is an issue I would really love to have resolved as I often use headsets while watching videos/movies/tuts.
Not sure if this helps, but my earplugs with 3.5mm analog jack on the front port do work. In the worst case I am looking to buy headphones with a 3.5mm analog jack, but since many of you are using the exact same configuration here, I am hoping someone might be able to guide me.
Thanks!