Thank you for the reply!!
I checked on the card, it definitely has the ca0106 chip on it.
I basically get the same problems with either card, the via or the sb. Just different drivers that aren't working.
I'm very pleased that I was able to get the kernel upgraded, overall I really like Linux and want to go to it completely. I would love to know exactly how the sound cards work to be able to understand what is not working here.

When I do alsaconf, it lists the card and then after the other couple screens tells me it's ready to use.

Aumix won't even start. When I do strace aumix from the command line here is the tail end of the output
access("/dev/sound/mixer", F_OK) = -1 ENOTDIR (Not a directory)
open("/dev/mixer", O_RDWR) = -1 ENOENT (No such file or directory)
exit_group(1) = ?
Alsamixergui gives me "snd_ctl_open failed: no such file or directory"

Here is the output of the boot log
sound: Loading sound module (snd-ca0106) succeeded
alsactl: alsactl: load_state:1267: No soundcards found...
sound: Setting mixer settings failed

here is modprobe.conf
# This file is autogenerated from /etc/modules.conf using generate-modprobe.conf command

alias eth0 via-rhine
install scsi_hostadapter /sbin/modprobe sata_via; /bin/true
install snd-ca0106 /sbin/modprobe --first-time --ignore-install snd-ca0106 && { /sbin/modprobe snd-pcm-oss; /bin/true; }
install usb-interface /sbin/modprobe uhci-hcd; /sbin/modprobe ehci-hcd; /bin/true
alias ieee1394-controller ohci1394

alias net-pf-10 off
alias IPv6 off

alias snd-0 snd-ca0106
# --- BEGIN: Generated by ALSACONF, do not edit. ---
# --- ALSACONF verion 1.0.8 ---
options snd device_mode=0666
alias sound-slot-0 snd-ca0106
# --- END: Generated by ALSACONF, do not edit. ---

Here is modules.conf
#ALSA portion
alias char-major-116 snd
alias snd-card-0 snd-ca0106
# module

# OSS/Free
alias char-major-14 soundcore
alias sound-slot-0 snd-card-0

# card #1
alias sound-service-0-0 snd-mixer-oss
alias sound-service-0-1 snd-seq-oss
alias sound-service-0-3 snd-pcm-oss
alias sound-service-0-8 snd-seq-oss
alias sound-service-0-12 snd-pcm-oss

Here is lsmod
snd_pcm_oss 48736 0
snd_mixer_oss 17152 1 snd_pcm_oss
snd_ca0106 26340 0
snd_ac97_codec 73656 1 snd_ca0106
snd_pcm 80072 3 snd_pcm_oss,snd_ca0106,snd_ac97_codec
snd_timer 20356 1 snd_pcm
snd 47268 6 snd_pcm_oss,snd_mixer_oss,snd_ca0106,snd_ac97_codec,snd_pcm,snd_timer
soundcore 7008 1 snd
snd_page_alloc 7364 2 snd_ca0106,snd_pcm

Well it seems if I tell XMMS to use the OSS driver the sound is *almost* perfect, but still it queues the sounds from other programs (like gaim). So when I press stop or try to open another mp3 I hear the gaim chime sound 50 times in a row lol.

I am downloading the OSS drivers now in hopes that it works better than this whole ALSA mess. Also getting an Audigy Gamer on ebay because I need firewire anyway.

The Audigy Gamer does have hardware mixing, right? If not then I will end up in the same position as now lol.

well if you look on Ebay you'll find that SB Live CT4760...works perfectly. But doesn't have firewire...I have no need for it...lol

My friend is having the same problem with his sound on his older SB Live. Gaim just chimes nonstop, it even does it with the OSS driver also. He bid on a CT4760 on ebay last week, hes just waiting on the mail now.

Its a great card if you just want to replace your Audigy LS...they normally go on ebay for $5