I've been reading that the sb live! has crummy resampling quality. And since most of the stuff I play is at 44100 and it is internally resampled to 48000, I was wondering if I should use software resampling to automatically resample it too 48000 to avoid the sb live from doing it.

However I thought I heard that even with 48000 source files the sb live still resamples and so it won't do me any good. Could someone please tell me if this is true and what is the best way to do it.

The easiest way to know is to test it yourself. For me it was quite obvious when my soundcard was resampling. (I have a Guillemot Fortissimo; REALLY crappy resampling) Download a sweep sample and see if you can hear anything other than a simple rising tone. If you can, then you soundcard's resampler sucks.
Then turn on the software resampler and do it again. If you still hear weird artifacts then your soundcard is still resampling poorly (highly unlikely)

I uploaded a sweep sample (flac, 275kb) for you to test here.

True, you can't disconnect the SRC circuit. But by using a good software resampler to resample your stuff to 48k you minimise the damage the Live can do, so it will do you some good.