I don't know if this will help, but... I am also using Windows XP with a Sound Blaster Live sound card. After installing version 1.1, I lost the sound from the aquarium and all other programs too.
When I just reinstalled the sound drivers the problem was still there. But after UNINSTALLING, rebooting, and then reinstalling the drivers, the sound was again working great.
I am using the latest drivers for the Sound Blaster Live from Creative's website (update 1).
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