I believe my problem is fixed. I myself searched and poked around forever and i guess i played around with installs and uninstalls for a while. Here is what i did.
While ur doing all this be downloading the driver
. This is what i used because i use Win 7 64 bit (yes i have 4gb mem and this is working because i have seen people with problems with 3+ gb's of mem). Creative Worldwide Support
1. Uninstall all evidence of creative software (ie. audio console; thx config; dts pack; dolby digital pack; soundfont manager; and other misc stuff that that support pack installed which i tried out with SOME success) DO NOT RESTART Yet.
2. go to device manager through control panel or through right clicking computer in start menu AND uninstall the sound blaster card under "sound, video, and game controllers" and there should be an option to check "delete the driver software for this device" also; do that as well.
3. Now you can reboot
4. **important** right after reboot windows attempts to find the sound card and install the drivers
from windows update. This appears as an icon next to ur clock in the bottom corner. click this icon and click the link or button that says to stop trying to get from windows update. This should leave the name of the card as "Multimedia Controller" or something universal like that in device manager. If in ur device manager it names the card as Creative SB X-FI then u failed lol. Just uninstall it and delete the driver in step 2 and try again.
5. Now with the sound card still named multimedia controller download the new driver creative has out for specificially windows 7/vista which was released in June 2009. install and run in admin and reboot after it's done and viola!
Everything should look as it did in XP like the console and what not and where it has ur flexiJack options it should have 2 options; one for digital and one for mic line in. (i used to not have this in other windows 7 driver attempts)
PS. I can add some picture steps if necessary cuz snipping tool is very cool
PS. If the sound does go out just change the mode in audio console to something and back to what u had it on.
EDIT: Whatever i feel like g-quiting windows 7 sound. I spoke too soon the sound is already very unstable.... it worked for a while though.......