[LegzRwheelz]

My question is this, would using a script like this "release" the exclusive audio "handling" so I can run apps with kodi running in the background? I am no scripter genius but it seems that Kodi could be put to sleep once its sent to the background. 
 

I've set a slightly modified version of IAGL that uses 2 AutoHotkey compiled scripts to minimize Kodi before launching Retroarch and to maximize it after Retroarch is exited, so -I think- just like you wanna do. Well, Kodi will release WASAPI, BUT you must set "Keep Audio Device Alive" and "Send low volume noise" (in System/Audio) both to OFF. For the record, here are my AHK scripts:

Minimize Kodi:

SetWorkingDir %A_ScriptDir%
WinMinimize, Kodi ahk_class Kodi
ExitApp

Maximize Kodi:

SetWorkingDir %A_ScriptDir%
WinMaximize, Kodi ahk_class Kodi
WinWait, Kodi ahk_class Kodi
WinActivate, Kodi ahk_class KodiExitApp

But, for some reasons, on my system this only works if Kodi display mode is set to "Use fullscreen window". 

I really want to thank you for the reply and help. I will try this out once the kids are in bed. This sounds exactly like what I need. I already had all three of these settings set like you detailed. I will still try this out to see if your issues are specific to your system. If anything, it seems like a great starting point. Thank you, soo freaking much. You are awesome.