GWX audio question

[Blacklight]

I have a question about the latest version of GWX. Does the latest version of GWX do something new to the audio that previous versions didn't do ? Ever since I've put the latest GWX in, even without the extra effects mods added in, the audio comes out all full of static and the speakers are popping loudly almost like my sound card is dying or shorting (Sometimes the static volume suddenly shoots way up by itself and blasts from the speakers almost knocking me out of my chair) Engine noises and fire especially seem to REALLY touch this issue off. No other program does this with my sound card. This computer is used as part of a music studio and it's audio is always pristine except for when SHIII with the new GWX is running. I never had this problem with a prior version. Uninstalling and reinstalling does not fix the problem. The odd thing is, I also get this static when I have the audio options in the game turned off. The static and popping only happen in game. There is no static or popping on any of the start menus. It's only when I'm actually in the game itself.

Any ideas ?

The sound card is a Soundblaster Live X-Gamer with the latest soundblaster drivers for it.

Update: I just did a reinstall and it's happening with the stock game as well. Explosions and fire definitely set it off. Everything is fine until a torpedo hits a ship. Either my sound card is going bad (which I doubt), or there is some kind of driver issue going on or something else. I'll try turning off the "Hardware Acceleration" in the sound setting in DXdiag and see if that may be the issue. I may have it cranked up too high.