First thing I would do is definatly install SP2 not only could it fix the issues you are currently experiancing but your computers security is at risk. I would try that first install SP2 and ANY updates they tell you, you might need (Including Driver updates)
If you are still having sound card issues after you update Windows to Service Pack 2 let me know and I would be more then happy to troubleshoot them with you...
Good Luck!
Gerritt.