Creative Audigy 2 Platinum issue :/

Hey everyone, new here
Don't know if this has been occurring for anyone else, but here's my two-fold problem.

1) When I have my headset plugged into the microphone input or the microphone input on the Audigy 2 Live Drive, everyone who is listening in game tells me that the sound is choppy and sometimes distorted. I have tried boosting the microphone, setting it to DVD quality 48000, and almost any other option under the sun that i've seen posted online elsewhere. The sound clears up for about a game, then comes right back with a vengeance. Randomly, there will be times where a high pitched whine is emitted out of the speakers and the computer locks up. To rectify the sound issue, I have enabled the onboard Realtek soundcard (Azalea?) and have been using the microphone input on that to get clear speech in game.

2) Apparently, the computer doesn't like to have two audio devices enabled. When playing L4D2 or Battlefield BC2, the high pitched whine and system freezing occurs more prevalently. This requires a manual restart and waiting through several screens of system restore. My motherboard doesn't like my USB keyboard and I lose keyboard control once the BIOS option disappears. So, when recovery options are available for me to choose, I have no ability to change the option and am forced to sit through anywhere between 1-4 restore attempts.

I was thinking that the Daniel K drivers would help a bit, but I am not so sure. Does anyone have any suggestion? Thanks for your time and consideration!

System Specs:
Windows 7 Professional 64bit
i7 920 C0 @ Stock
Gigabyte GA-EX58-UD5
OCZ 6GB DDR3 (3x2GB) @ 1066 wont OC to rated speed 1600
eVGA 1GB GTX 285 SC
SB Audigy 2 Platinum
WD 640GB Caviar Blue
WD 500GB Salvaged Drive from Mybook
PC Power & Cooling Silencer 610W
Corsair Hydro H50 CPU Cooler

Hey Bane,
First you should check out that you have 64bit drivers.
I have many friends who says that 2 sound cards = trouble, specially when making music.
Second problem might be that your USB "wakes up" slowly. The easy solution would be to use ps/2 keyboard, when this happens..

Try downloading the new drivers: http://www.sevenforums.com/sound-audio/21804-creative-sound-cards-10.html#post683734

windows 7 64 audigy 2 microphone robot distortion

http://www.sevenforums.com/sound-audio/92190-audigy-2-zs-microphone-problem.html#post1064721

Audigy 2 + Windows 7 = Robot sound - AnandTech Forums