Try to make sure the Audigy and your ATI card are not sharing an IRQ by moving the Audigy to a different PCI slot. If they're not sharing an IRQ, then try to download the latest Audigy drivers from Creative's website.
I have some other MMC 8.7 problems; on some DVD titles, I see decoding errors using the ATI DVD decoder. However, the same title plays perfectly fine with either PowerDVD or WinDVD. Anyone having similar problems?