SB Live!, winXP, newest kx drivers.
I set up everything exactly as it's shown in
http://kb.kxproject.lugosoft.com/guide/setup-mic.html
When I start recording it records only sounds that are played by the computer.
When I plug the microphone the unbearable lound beeeeping sound starts (and stops when i disconnect the microphone from the soundcard) and all I still cant record anything from mic.