I ran sh blah blah blah (the nvidia driver in init 3) and ran /sbin/ldconfig
I also changed /etc/modprobe.d/sound to snd-card-0 nvsound.
I also changed the audio device under sound sytem to OSS. As you can see below nvsound loads but is not attached to anything. Nvmixer does not shows nothing in information tab. I do have sound but not the right way. Please help. Thanks in advance.

Below is my lsmod.

Module Size Used by
snd_seq_dummy 3716 0
snd_seq 52752 1 snd_seq_dummy
snd_seq_device 8588 2 snd_seq_dummy,snd_seq
snd_pcm_oss 57632 0
snd_mixer_oss 18944 1 snd_pcm_oss
nvsound 1537976 0
subfs 7296 2
ipt_LOG 6912 7
ipt_limit 2432 7
ipt_pkttype 1792 1
cpufreq_userspace 4316 1
powernow_k8 11652 0
speedstep_lib 4100 0
freq_table 4484 1 powernow_k8
thermal 14088 0
processor 23732 2 powernow_k8,thermal
usbserial 28008 0
fan 4868 0
button 7056 0
battery 10116 0
ac 5252 0
nvram 8200 0
fglrx 230268 7
joydev 9664 0
st 37788 0
sr_mod 16548 0
af_packet 20744 2
usb_storage 63680 0
usbhid 41312 0
ati_remote 12040 0
usblp 12160 0
evdev 8832 0
pcmcia 24072 0
yenta_socket 21128 0
rsrc_nonstatic 10112 1 yenta_socket
pcmcia_core 47024 3 pcmcia,yenta_socket,rsrc_nonstatic
sg 36256 0
edd 10080 0
ipt_state 2048 12
ip6t_REJECT 6784 3
ipt_REJECT 6656 3
iptable_mangle 2816 0
iptable_filter 2944 1
ip6table_mangle 2432 0
sk98lin 186840 1
ip_nat_ftp 3072 0
iptable_nat 22236 1 ip_nat_ftp
ip_conntrack_ftp 72592 1 ip_nat_ftp
snd_intel8x0 31808 1
ip_conntrack 42168 4 ipt_state,ip_nat_ftp,iptable_nat,ip_conntrack_ftp
snd_ac97_codec 71416 1 snd_intel8x0
snd_pcm 93832 3 snd_pcm_oss,snd_intel8x0,snd_ac97_codec
ip_tables 20352 8 ipt_LOG,ipt_limit,ipt_pkttype,ipt_state,ipt_REJECT,iptable_mangle,iptable_filter,iptable_nat
snd_timer 24452 2 snd_seq,snd_pcm
snd 60548 11 snd_seq_dummy,snd_seq,snd_seq_device,snd_pcm_oss,snd_mixer_oss,snd_intel8x0,snd_ac97_codec,snd_pcm,s nd_timer
forcedeth 17408 0
ip6table_filter 2816 1
soundcore 8928 2 nvsound,snd
ip6_tables 18304 3 ip6t_REJECT,ip6table_mangle,ip6table_filter
ehci_hcd 31624 0
ohci_hcd 20232 0
usbcore 108760 8 usbserial,usb_storage,usbhid,ati_remote,usblp,ehci_hcd,ohci_hcd
snd_page_alloc 9988 2 snd_intel8x0,snd_pcm
video1394 17612 0
i2c_nforce2 6400 0
amd64_agp 11720 1
i2c_core 21776 1 i2c_nforce2
agpgart 32296 2 fglrx,amd64_agp
ohci1394 31492 1 video1394
raw1394 28140 0
ieee1394 97976 3 video1394,ohci1394,raw1394
capability 3256 0
parport_pc 38212 1
lp 11076 0
parport 33864 2 parport_pc,lp
ipv6 236672 11 ip6t_REJECT
nls_utf8 2048 1
ntfs 167184 1
dm_mod 56316 0
reiserfs 242928 1
ide_cd 37892 0
cdrom 36640 2 sr_mod,ide_cd
ide_disk 16640 0
sata_sil 8580 3
libata 49156 1 sata_sil
amd74xx 12060 0 [permanent]
ide_core 120020 4 usb_storage,ide_cd,ide_disk,amd74xx
sd_mod 17936 5
scsi_mod 125256 6 st,sr_mod,usb_storage,sg,libata,sd_mod