1 desktop & 1 laptop & 1 speaker set(stereo) & 1 headset.
So there are 2 input devices & 2 output devices.
Is there somthing that i can build to switch the audio across the setup..?
i dont want to physically unplug 1 device from desktop to laptop or vice versa...somthing that i can build with a switch or something for choosing the source audio line & target audio device.
You need two DPDT switches, four 3.5 mm jacks and a small box to put it all into.
Each switch is connected to an output, and receives the source on either side. You can switch between endless combinations of source and output. Check this for the basic wiring principles Guitar Wiring Site - scroll down to the DPDT bit. You'll need to learn this on your own, as it depends on the exact switch you get.
The sound is degraded considerably due to all the joints and contacts, but I suspect that isn't a priority here as you're running off the laptop soundcard directly.