I found this information, copied it from the Vista Forums, but the post was copied from Creative's site .... so its 3rd hand information, at best!
(from the Creative forums - I just copied/pasted - jh)
For those of you with live 5.1 problems, here you go!! Worked for me!
From the post @ http://neosmart.net/blog/archives/104:
Creative Sound Blaster Live! Series
This applies to all Live! products, including OEM Dell, Gateway, HP,
etc. editions, 24-bit, 5.1, and the rest. Vista 5308 may or may not
find drivers on Windows Update, but even if it does, they will not
support Digital Audio.
1. Grab the ngoHQ modded drivers from http://www.ngohq.com/home.php?page=Files&a...e&dwn_id=20
2. Run the installer in XP compatibility mode.
3. Restart your computer.
4. In the audio properties in the Control Panel, to enable digital audio go to the Other tab and check digital output.
5. Play with the Format tab to get the audio quality to your liking.
6. You may need to restart to ensure that digital audio works after changing that option.
not 100% sure if creative is going to be upset that I posted this, but
since they have no plans to support the card in Vista, I can't see a
big problem with it.
BTW, I tried the KX driver and I couldn't get it to work, so for anyone with that problem this should be your solution.