I completely block out outside stimuli at times, and at other times, I am completely unable to focus on what I'm doing because I can't block anything out.
For instance, my friends find it incredible that I can sit in a room with 5-6 people talking and a TV on, and read a book. I do it all the time. They say they would never be able to focus on what they were reading, but I don't even notice what is going on around me. I think this is the case when I'm very intensely interested in something...I can just close everything else out. I, too, often failed to respond to people when they were talking, but that's typically because they would just start talking to me, and there was no verbal or visual cue for me to start listening. I always had to tell people to call my name first and make sure I turned around to acknowledge them, or I was most likely not listening.
On the other hand, if I'm only mildly interested in something, or worse, not interested at all, I'm flooded with all kinds of other distracting stimuli. When I do my online job, which I hate, it needs to be completely quiet...I need to put on my noise cancelling headphones and make sure that I'm not in a room with other people or with a TV on. My NT friend can do the same online job and watch TV at the same time. Also, if someone is talking to me about something in which I've no interest, I'll be distracted by the tiniest noise or image, like a piece of fuzz on their shirt or a noise outside.
It's like my brain categorizes things as 'vitally important' and 'not important', and depending on the category, I can totally hone in on what I'm doing, or not be able to focus at all.
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Aspie Quiz: AS - 141/200, NT - 77/200 (Very likely an Aspie)
AQ: 34/50 (Aspie range)
EQ: 32 / SQ: 68 (Extreme Systemizing / AS or HFA)
Diagnosed with AS and Anxiety Disorder - NOS on 03/21/2012