after a long time of fiddling with alsa mixer i finally have everything working perfectly.
in the console type alsamixer to get to the alsa mixer program.
First hit f5. Then turn up the volume on EVERYTHING. You use the cursors for doing this, press up, and then press right and turn everything up.
If you are having problems, like getting no sound at all. pay special attention to all the bars to the right of "ac97" one of the emu10k1 settings in particular needs to be set at 0 otherwise you will get no sound at all. and some should be enabled. its best to just disable all of them, and start turning them up till you can hear sound. if the sound turns off when you start turning the volume on them up, then that is probably one of the ones that needs to be set at zero.
Now. find the "Line" channel, make sure its not muted. hit the spacebar, to enable recording on it. Scroll over to the caputre channel, and hit spacebar. you should now be able to use line in to record in audacity. yay
Now, Here is the part that took the longest time to figure out. Find the "Tone" setting, unmute it with m. Your bass and treble settings should now work. If turning up bass sounds like a broken speaker with lots of distortion. just go to the "wave" and set it to 50% or just enuf so that you don't have anymore distortion in the bass.
mute the microphone channel as well, you get far less noise during playback that way.
Hope this helps to anyone with a SB live.
Edit, if you are using dapper with a soundblaster live, it's a bit different.
Wave, line-in, cd, and mic, should all be at 50% Most importantly ac97 should be at 0%, but ac97cap should be at 100% then you can record off the line in.