Oh no, I'm having the same problem. lmms worked prefeftly in jaunty but broke after karmic upgrade.
I tried reinstalling through synaptics, and also put the path in software repository and tried to upgrade through the terminal.
Alsa says I have 5 plugins... all with their sliders turned to max.
Still no sound
Still no sound after sys upgrade. I noticed this upgrade installed some audio files. Maybe the rest are currently being written?
Edit: While trying to edit my post, my system rebooted itself

And I checked lmms and the sound is now working!
Amazing!
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