Mark,
As George stated, you must have the Resolution set to 16 bit or it won't work correctly. If you had it at 32 bit before you were just lucky for some reason. I would say maybe this Sound Blaster 512 that you have installed is causing some grief. Try slowing down the hardware acceleration on this card to see what will happen.
Here is how to change the Hardware acceleration:
- Go to the start Menu
- Click on Run
- Type in DXDIAG
- Click on Sound
- At the bottom left you should see something named DirectX Features under this there is a slider, that shows Hardware Sound Acceleration Level. Try sliding this to the left until Microstudio will work. You may not have to go all the way to the left, but maybe half way.
Let me know what this does.