Had posted a response earlier in the evening but somehow it just disappeared. Will try again.

The converter that I was asking about was the one that was mentioned earlier in this thread.

http://www.amazon.com/Cable-Converter-Music-Keyboard-Window/dp/B0017H4EBG

I don't have a link for the video. I had done a google search for Asio4all for Win 7 and this showed up in a list.

I was so excited that I had gotten it to work that I thought it was a permanent solution but after I turned off the computer and then turned it back on again I find that I would have to reset this each time I wanted to use ASIO (not really so good) What I had done was go into control panel and click on "Hardware and Sound" then under "audio sound managment" I enabled the headphone jack and put a dummy plug in it. Then I went back and enabled ASIO and set it up in Options" in BIAB. Disabled, Microsoft GS Output and voila my controller was working and I could play along with BIAB with almost no latency. However as I stated this is not a permanent solution because it has to be reset everytime you want to use the controller. It's just a "work around".
The guy in the video says that this problem was caused by change the designers of WIN7 made in making the soundcard only accept one input and one output and when it's in use by another device you get no sound. Hope this helps...I will continue looking for a more permanent solution.