Tzandme:
You definitely need to see a neuro opthamologist if you haven't done so. Closing your eyes may indicate that your visual processing is damaged and is taking up way too much brain energy....so if you need to listen to someone you close your eyes to free up processing space.
I still close my eyes when talking about tough things or when on the phone.

My friend calls it X-ray hearing and considers it a super power - to make me laugh at myself and find a silver lining. My sound sensitivity was recently diagnosed as hyperacusis.

1 - The audiologist prescribed musician ear filters, but I can't afford them yet. An alternative that works for me is using my sound canceling ear buds. Not all ear buds are created equal...in fit or filtering ability, so if one doesn't work...keep looking.

2 - 6 yrs post injury my sensitivity has not decreased, but do find my reaction (emotional lability) has improved with exposure to white noise.

3 - Coping: Limit exposure to known sound issues like busy restaurants, stores, concerts, etc. Use ear filters, ear plugs or ear buds in noisy situations. I hear everything which causes my senses to be overwhelmed so when I can't avoid noise I plug my earbuds into my phone/iPod and listen to music to cancel the other noises - I find this a big help.