take a look at this link:
SoundBlaster Live! 5.1 Windows 7 Driver | Phildawg.com
also, there's a working driver for Vista that might work for Win7 here:
you can also try this driver (not my link and I do not know if it works 100%):
Download SB Live! 5.1-Win7.rar, upload your files and earn money.
Just reporting what happened to me.
I have a Dell Dimension 8300 Desktop that had a SoundBlaster card (model SB0203) as well. Window 7 objected to the card, but reported that the onboard audio was working fine. Inside the machine, I found that the cable connecting the headphone jack was connected to the soundboard card. I pulled the SoundBlaster card and after a quick look at the manual I reconnected the headphone cable to the mother board. Everything is working fine!
Thanks for the guidance
To the OP (Vakanuvis), you should try the drivers from Official kX Project Site -- News if it's an older Soundblaster Live! card. I struggled with getting a working driver for a Soundblaster Live! card on a Win7 Ultimate x64 install (tried the one's from Creative's site and elsewhere), and after about 5 hours finally found this one. After installing it, you may have to go into the Sound options in Control Panel and test all the different mixer's the driver adds, and hopefully one will work for you! Good luck!