Stuck 'loading' if Use Hardware is set to ON

[soopytwist]

Sorry, makes perfect sense to post the hlp.log 'with hardware on', silly me...BTW I have to hit the Windows key and 'close' the game from the taskbar when it gets stuck on the loading screen.

I can already see the entry: Setting up Environmental Audio...Failed.
may have something to do with the game not loading. As for the sound card driver, the one I have is the latest one that works with my 'value' (i.e cheap) version of the Audigy2. I tried to use a newer driver and it stopped XP Pro from booting while the sound card was installed (had to do a repair install of XP).

I've been playing the game without the EAX extension, hance the reason for the map on the last line of the log file.

-------- THE HPL ENGINE LOG ------------

Creating Engine Modules
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Creating graphics module
Creating system module
Creating resource module
Creating input module
Creating sound module
Creating physics module
Creating ai module
Creating gui module
Creating haptic module
Creating scene module
--------------------------------------------------------

Initializing Resources Module
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Creating resource managers
Misc Creation
--------------------------------------------------------

Initializing Graphics Module
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Init low level graphics
Setting video mode: 1920 x 1200 - 32 bpp
Init Glee...OK
Setting up OpenGL
Max texture image units: 32
Max texture coord units: 8
Two sided stencil: 1
Vertex Buffer Object: 1
Anisotropic filtering: 1
Max Anisotropic degree: 16
Multisampling: 1
Vertex Program: 1
Fragment Program: 1
NV Register Combiners: 1
NV Register Combiners Stages: 8
ATI Fragment Shader: 0
Creating graphic systems
Creating Renderer2D
Renderer2D created
Creating Renderer3D
Load Renderer3D gpu programs:
Extrude
Diffuse Vertex
Diffuse Fragment
Fog
Creating fog textures: Solid Additive Alpha
init sky box
Renderer3D created
Creating screen buffers size 1920.000000 : 1200.000000
Creating programs
RendererPostEffects created
Adding engine materials
--------------------------------------------------------

Initializing Sound Module
--------------------------------------------------------
Initializing OpenAL.
Trying to open hardware device... Success!
Device name: SB Audigy 2 Audio [CF00]
Number of mono sources: 32
Setting up Environmental Audio...Failed.
--------------------------------------------------------

Initializing Game Module
--------------------------------------------------------
Adding engine updates
Initializing script functions
--------------------------------------------------------

User Initialization
--------------------------------------------------------
Trying to load vertex program!
Success!
All set up done, starting game!
--------------------------------------------------------

Game Running
--------------------------------------------------------
Loading collada for 'maps/level08_computer_room.dae' took: 642 ms