Woop woop! Confirmed on Ubuntu 12.04! 
After the restart did something funny as I tried to turn the volume down to 0 
and then I lost everything.
Run alsamixer again and check for any "MM" label below any channel. This means 
the channel is muted. Hit m on keyboard to turn "MM" to "00" (means 
open=working). Once I did this I could turn the volume from my keyboard from 
all the way down to 0 to 100%.

Thanks bdantas a LOT !!!

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https://bugs.launchpad.net/bugs/871133

Title:
  Ubuntu Oneric Volume Step Can Not be Changed

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