Audio AND video problems

I also posted this in "software" as I am not sure if it's the hardware or the software related to it. But here goes:

I have seen similar threads on my problems but no proposed fix (if any) worked.

I have windows xp, sp2 with a creative soundblaster live wdm. Installing SB also gives me Soundmax Integrated Digital Audio. I have directX 9.0c.

Problem #1. No sound. The card is recognized in device manager but properties says that the driver is enabled but has not been started.

A dxdiag test in audio failed, saying the drivers are not installed, specifically it mentions P16x.sys and smwdm.sys. They're there, I've found them. I tried uninstalling the drivers and reinstalling them. I have uninstalled the card and reinstalled the card. I have removed and relocated the card in hopes I could start all over, at which point it recognizes the hardware, I go through the install process for SB and it says device is now ready.

After all that, control panel/sounds has greyed out display with "no audio device installed", and the device manager shows I have the hardware but the enabled-but-not-started message.

Either I have missed steps or maybe I did something in the wrong order. It's not reading the drivers and I can't figure out why. If I have to do an uninstall and reinstall thing, if someone could please run me through STEP BY STEP to ensure I'll do it correctly. THANKS

Problem #2. A display error - cannot display this video mode - when doing a dxdiag test of draw and acceleration. Only the first two tests, small screen, come out ok. Other tests fail and show that error.

I have NCIDIA GeGorce 4 MX 440 with AGP 8x., display ram 64. Set at 1024 x 768, VGA. with driver nv4_disp.dll.

a test on driveragent.com shows all ok with these drivers and it even recognizes that I have them!!

So, WHAT'S UP?
PS - did all the usual - virus and adware scans and cord inspections too!
And, all devices are shown as enabled in device manager and the system set up has sound on and pc speaker on. I can't think of any more info to give you but please ask anything as I am willing to help you to help me. I've been at this (no lie) 8 hours a day for 4 days now. I've read every article but they don't specifically relate to my specs so I'm not sure, plus they are all about 4 years old and there may be new info/knowledge out there (if only I could find it!).

A HUGE thanks!

*desperate housewife *

 

Here's some more info on those two driver files I have and it won't recognize:

the file smwdm.sys is located in these locations:

C:\driver\audio
C:\windows\system32\drivers
C:\DELL\drivers\R10511\SMAXWDM\W2K_XP
C:\Dell\drivers\R58182\SMAXWDM\SE
C:\DELL\drivers\R58182\SMAXWDM\W2K_XP

The file P16X.sys is found to be in

C:\Program Files\soundblaster\audio\drivers\WIN2_XP
C:\I386
C\drivers\audio\addon
c:\windows\system32\drivers
C:\widows\system32\reinstallbackups\0025\driver files
C:\widows\system32\reinstallbackups\0026\driver files

hope this add'l info helps