I fixed the problem already. I posted above. If I put -dsound in the target line the game starts fine.
I have no mods installed and all is up to date. The game starts up now with extremely loud screeches like when a soldiers voice is going to be played on the main screen, it screeches it. I've disabled the EAX and that isn't the problem. Next step is uninstall sound drivers and reinstall with a fresh install of OpenAL.
Found a few other things to hopefully solve my ingame crashes. Last night, I was talking to the guys I play with on Vent and the next thing I know its dead silent. Alt tab out and all other programs were shut down because I ran out of virtual memory. I couldn't even bring up task manager. Once I closed Arma, I got all of my memory back and I was allowed to run programs again.
Think that has to do with me having page files still turned on so Im goin to turn them off tonight and see how it goes.
Seems that after playing with my squad for awhile, the game will crash out on me with an error. I've put the maxmem=256,512,1024, and 2048 in there and each still will crash out after an hour or so of playing.
Also going to install it on my Vista partition later tonight to see if Vista has the same troubles with it.
I'll keep ya afloat to help any others that might be having a similiar problem with things crashing out. I think my sound card might have some problems with the game. It works fine for Americas Army, Counter Strike, WoW, and BF2. It just doesn't like Arma.