Create Mute Button

[Eye for Video]

Not exactly sure what type of sound you are using but here is some AS for a mute button, which mutes but does not stop the sound. When clicked again it un-mutes, and continues playing at whatever point the sound has reached.

var jukebox:Sound = new Sound();
some other stuff goes here

//-------MUSIC PLAYER CONTROLS--------//
var currentPosition:Number = 0;
var paused:Boolean = false;
mute_btn.onRelease = function() {
	if (jukebox.getVolume() > 0) {
		jukebox.setVolume(0);
	}
	else
	{
		jukebox.setVolume(100);
	}
}

This is from a 1 frame mp3 player. The button is just a simple button with the action in the actions layer of the main timeline. Maybe you can adapt something from this.
Best wishes,
EfV