Okay Brian, you are officially a BIAB genius! I changed the BIAB driver to MME, and Proteus driver to Direct Sound and ran in standalone mode and everything works. I also unticked the VST/DXi Synth option. Almost everything works anyway. When I try to render my song I get the following message:

"There is a problem with your sound hardware. To install mixer devices, go to Control Panel, click Printers and other hardware, and then click add hardware."

Any ideas?