Fixed it I think. Will do more testing

sudo rm /var/lib/alsa/asound.state*
sudo pacman -R alsa-utils
reboot
sudo pacman -S alsa-utils
sudo alsactl store

Then change my asoundrc to

pcm.!default {
    type asym
    playback.pcm
    {
        type plug
        slave.pcm "dmix"
    }
    capture.pcm
    {
        type plug
        slave.pcm "dsnoopin"
    }
}

pcm.dsnoopin {
    type dsnoop
    ipc_key 5978293 
    ipc_key_add_uid yes
    slave {
        pcm "hw:1,0"
        channels 2
        period_size 1024
        buffer_size 4096
        rate 44100
        periods 0 
        period_time 0
    }    
    bindings {
        0 0
        0 1
    }
}

Original Issue

I am getting weird feedback/static/echo when ever sound is played through Steam or a game/program launched through steam. I did not have this problem before I enabled dsnoop however before dsnoop was enable I was not able to use my mic in external programs while using them in game. Dsnoop is the dmix for input devices. I have tested every game I have on Steam and they all have the same problem. I also decided to try games that I have that are not launched through steam and every single one of them works perfectly. However if I add them as a non steam game and launch them through steam I get this issue. I even tested it with non steam games such as VLC. VLC works great when I run it by itself but when I add it to steam and launch though it I get this issue also. SO my guess is this is steam related and not game related. I am using the awesome window manager and have a GTX 550ti

My .asoundrc

This config allows me to use my mic in multiple applications and multiple applications can also use my speakers. I do not have any problems in any other applications with this config.

pcm.!default
{
        type plug
        slave.pcm "mix"
}

pcm.mix {
    type asym
    playback.pcm
    {
        type plug
        slave.pcm "dmix"
    }
    capture.pcm
    {
        type plug
        slave.pcm "dsnoopin"
    }
}

pcm.dsnoopin {
    type dsnoop
    ipc_key 5978293 
    ipc_key_add_uid yes
    slave {
        pcm "hw:2,0"
        channels 2
        period_size 1024
        buffer_size 4096
        rate 44100
        periods 0 
        period_time 0
    }    
    bindings {
        0 0
        0 1
    }
}

Old asoundrc

pcm.!default {
    type asym
    playback.pcm
    {
        type plug
        slave.pcm "dmix"
    }
    capture.pcm
    {
        type plug
        slave.pcm "usb"
    }
}

pcm.usb
{
    type hw
    card U0x46d0x81d
}

System Information

Processor Information:
    Vendor:  AuthenticAMD
    CPU Family:  0x10
    CPU Model:  0x4
    CPU Stepping:  0x2
    CPU Type:  0x0
    Speed:  2600 Mhz
    4 logical processors
    4 physical processors
    HyperThreading:  Unsupported
    FCMOV:  Supported
    SSE2:  Supported
    SSE3:  Supported
    SSSE3:  Unsupported
    SSE4a:  Supported
    SSE41:  Unsupported
    SSE42:  Unsupported

Network Information:
    Network Speed:  

Operating System Version:
    "Arch Linux" (64 bit)
    Kernel Name:  Linux
    Kernel Version:  3.10.9-1-ARCH
    X Server Vendor:  The X.Org Foundation
    X Server Release:  11402000
    X Window Manager:  Awesome
    Steam Runtime Version:  steam-runtime-release_2013-09-05

Video Card:
    Driver:  NVIDIA Corporation GeForce GTX 550 Ti/PCIe/SSE2

    Driver Version:  4.3.0 NVIDIA 325.15
    OpenGL Version: 4.3
    Desktop Color Depth: 24 bits per pixel
    Monitor Refresh Rate: 60 Hz
    VendorID:  0x10de
    DeviceID:  0x1244
    Number of Monitors:  2
    Number of Logical Video Cards:  1
    Primary Display Resolution:  1920 x 1080
    Desktop Resolution: 3840 x 1080
    Primary Display Size: 18.78" x 10.55"  (21.54" diag)
                                        47.7cm x 26.8cm  (54.7cm diag)
    Primary Bus: PCI Express 16x
    Primary VRAM: 1024 MB
    Supported MSAA Modes:  2x 4x 8x 16x 

    Sound card:
    Audio device: Realtek ALC888

Memory:
    RAM:  7988 Mb

Miscellaneous:
    UI Language:  English
    LANG:  en_US.UTF-8
    Microphone:  Not set
    Total Hard Disk Space Available:  1629185 Mb
    Largest Free Hard Disk Block:  395573 Mb

Installed software:

Recent Failure Reports:
    Fri Sep  6 23:57:24 2013 GMT: file ''/tmp/dumps/assert_20130906165722_4.dmp'', upload yes: ''CrashID=bp-0abeec7b-80cb-499f-9c89-07deb2130906''
    Fri Sep  6 23:57:24 2013 GMT: file ''/tmp/dumps/assert_20130906165722_7.dmp'', upload yes: ''CrashID=bp-c06536d4-93c3-42b1-ad29-6642f2130906''
    Fri Sep  6 23:57:24 2013 GMT: file ''/tmp/dumps/assert_20130906165722_5.dmp'', upload yes: ''CrashID=bp-eb1d5f62-0e90-4bd7-b2ee-af9352130906''
    Fri Sep  6 23:57:24 2013 GMT: file ''/tmp/dumps/crash_20130906165722_2.dmp'', upload yes: ''CrashID=bp-e146f2c4-2e9a-4552-980f-efb0a2130906''
    Fri Sep  6 23:57:25 2013 GMT: file ''/tmp/dumps/assert_20130906165724_2.dmp'', upload yes: ''CrashID=bp-3635545e-1efe-43a9-93e8-ac2282130906''
    Fri Sep  6 23:57:25 2013 GMT: file ''/tmp/dumps/assert_20130906165724_4.dmp'', upload yes: ''CrashID=bp-b7acd0ac-c26a-42a4-9771-968ae2130906''
    Sat Sep  7 05:48:59 2013 GMT: file ''/tmp/dumps/crash_20130906224856_1.dmp'', upload no: ''HTTP response code said error''
    Sat Sep  7 05:49:12 2013 GMT: file ''/tmp/dumps/crash_20130906224910_1.dmp'', upload no: ''HTTP response code said error''
    Sat Sep  7 06:04:05 2013 GMT: file ''/tmp/dumps/crash_20130906230322_1.dmp'', upload no: ''HTTP response code said error''