For some reason whenever any sound is played in minecraft, whether it be a block place, a footstep, or the ingame music, it crackles and snaps with static. This is ONLY when Surround Sound mode is ENABLED.
I have never had this problem with any other game, or program so it has to be a problem with Java, minecraft, or some combination. When I'm standing still in the game and no sounds are playing, even if it's still open and running there won't be static. It's only when a sound is played. I can't think of what to try, this problem started with the updated version of Logitech Gaming software, so that's the next step.

UPDATE: I've found out that Minecraft sounds by themselves are just fine, but any other music INCLUDING the music from Minecraft will make a static noise whenever another sound is played. So if I tough it out and altogether skip music there is no problem.