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With PC Companion you can repair the phones software which will fix the issue in case it's software related. But please note that a software repair will reset your phone so you first need to backup any data you want to save.
To perform a software repair, start PC Companion and select Support zone -> Software update -> Repair phone.
But if you have sound issues it might be that the phone thinks a headset is connected. Make sure there's no dirt in the 3.5mm jack and try to connect and then remove a headset.
This is how to boot on safe mode
http://talk.sonymobile.com/t5/FAQ/How-to-boot-your-phone-into-safe-mode/m-p/348008#U348008
You could repair your phone with PCC and report back
Bridge (for Mac)
Alternatives on How to backup Xperias
http://talk.sonymobile.com/thread/36355
@ uliwooly, I downloaded the PCC, in this PCC what am I supposed to check for this sound issue I am facing ??
With PC Companion you can repair the phones software which will fix the issue in case it's software related. But please note that a software repair will reset your phone so you first need to backup any data you want to save.
To perform a software repair, start PC Companion and select Support zone -> Software update -> Repair phone.
But if you have sound issues it might be that the phone thinks a headset is connected. Make sure there's no dirt in the 3.5mm jack and try to connect and then remove a headset.