There are "low level" kernel drivers and there are application level drivers for the sound card.
The latter (such as Alsa/Arts) grab the device and provide a software interface to the applications which want to output sound.
So if you configure KDE and XMMS (as well as other programs) to use ALSA they can all share the sound device at the same time even when the sound card does not support this (which many poorer quality ones do not...).
By setting Xine or Kaffeine to use Alsa/Arts, I can watch a movie, listen to MP3's and hear the system events, etc. on the same sound output device w/o problems.
If however XMMS is set to use /dev/dsp directly, etc. you'll find that only one application can output sound at a time.
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