After trying a lot of things all of a sudden it started to work. So I started looking into why and how. I noticed that I have ALSA 1.0.15rc1 installed from the source code; I did that basically as instruction provided from the Ubuntu help but the wiki alone did not solve the problem then. Later I have installed alsaplayer-alsa, alsaplayer-gtk, alsa-tools and alsa-tools-gui packages and ran alsaconf again. Used the ALSA mixer to turn the PCM channel on and set full volume and then all of a sudden hurrah! there is sound in my laptop. But I do not think that upgrading to ALSA 1.0.15 is required it could be achieved in 1.0.13 as well if the additional packages are installed but that is my hypothesis, I am not absolutely certain. I hope this works for others as well. If it does let me know.
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