I have an Audigy 1 with Audigy 2 drivers installed. All works properly only the combination of Kernelstreaming (which is my favourite) and "Convert 2 Channels to 4 Channels" DSP gives me, if activated, a much louder and crackling output, total disturbed. Ok, I have no Audigy 2 but they who have one with Drivers 5.12.1.324 installed (newest update), is it the same thing for you? I have nothing activated, no CMSS, no Eax, Surroundmixer as Standart in the Center... a bug in DSP or a Driver problem? By the way, DirectSound and Waveout work properly with DSP activated... could also be Kernelstreaming itself with Drivers 5.12.1.324....
Edit: I have found the "Error". KS seems not to work properly if in Start // Configuration // System in the "Sounds and Multimedia" Tab the Setting for playback as "Headphone" is set. I set it back to "Quadrophine", now KS works properly!