I'm not quite sure I understand everything about this new PulseAudio in Hardy, but I noticed in my Volume Control Preferences that it is set to SBLive! [CT4620] (Alsa mixer). There is also an option for:
Playback: ALSA PCM on front:0 (ADC Capture/Standard PCM Playback) via DMA (PulseAudio Mixer)

Do I need to set it for the 2nd option in order to be using PulseAudio? Not sure here what this should be set to.

Any help greatly appreciated.