Stuck 'loading' if Use Hardware is set to ON

[soopytwist]

The game won't load if I turn on 'Use Hardware' in the sound settings. The 'Loading' message appears but stays there and nothing else happens either starting the game or the tutorial. Works fine if set to OFF. I've patched the game but can't get a newer sound card driver than the one I have. OpenAL is installed from the game disc.

Also on a related note, If 'Post Effects' is turned on in the video settings I get a lot of garbage on the screen and strange reflective textures tearing across the screen.

My specs:
Mobo: DFI Lanparty UT RDX200CF-DR
CPU: AMD Athlon 64 X2 Dual Core 4800+ ~2.4Ghz
O/S: Windows XP Pro Service Pack 2 (Dual Core patched)
RAM: 2Gb OCZ Platinum PC3200 Dual Channel EL-DDR CAS2
HD: 160Gb SATA300 Western Digital WD1600JS Caviar SE
Drives: MSI 52x32x52 CD-RW & Pioneer DVD-RW DVR-112D
Graphics: Innovision3D Nvidia GeForce 8800GTS (driver version 169.21)
Sound: Creative Audigy2 'Value'