Input Toggled to NONE without warning on OS X 10.8.2 when using 3rd party output device

What steps will reproduce the problem?
1. Run Soundflower as normal on 10.8.2
2. Select a 2 CH output device (in my case, Audioengine D1)
3. After what seems like a random amount of time the input will reset to none 
without warning if no sound is being paid or with a very loud noise if sound is 
being played.

What is the expected output? What do you see instead?
When using the sound output consistently (i.e. w/ Spotify) Soundflower will 
begin to crackle, if at that time I do not manually reset to none & then 
re-select my 2 ch output device Soundflower will suddenly make a very loud & 
sustained sound until being reset. The sound comes through the selected 2 ch 
device.

If no sound is in use at the time of failure Soundflower will silently reset to 
NONE.

What version of the product are you using? On what operating system?
1.6.2  / OS X 10.8.2

Please provide any additional information below.

I think the above covers it. I am using the Audioengine D1 which is an optical 
sound output device. I choose to use Soundflower to gain control over my volume 
via OS X instead of needing to use the physical volume control on the device.

Thanks

Original issue reported on code.google.com by brentcmu...@gmail.com on 6 Dec 2012 at 6:52

ImCelty / soundflower

Input Toggled to NONE without warning on OS X 10.8.2 when using 3rd party output device #181