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Well, although connecting system capture to playback is not that useful, and provided there's no transducer (eg. speaker-to-mic) to close the loop on the outside, it is very unlikely that feedback builds up in this way. Unless, of course, there's a short in the sound device, probably in the hardware mixer, or some kind of cross-talk meaning the soundcard duplex channels are not that quite isolated and/or independent.

Seeya