Figured I'd centralize a thread for this problem since there seems to be a lot of disorganized threads about it, and the fact that I'm still having issues. First off, the "solution":
I can't guarantee that this will fix things, but it worked for me and has on a bunch of other games I play. DDO uses OpenAL, which, depending on the version, doesn't always like to play nice with your sound card, depending on your card manufacturer. For me this happens more often than not since my on board card is pretty picky(or OpenAL is, one of the two), and I found an updated OpenAL library that every game I've replaced it with has worked fine(that was having the issue). So basically download this OpenAl installer, run it, copy the OpenAL32.dll from your C:\Windows\system32 directory file, put it in your DDO install directory where you'll see the old OpenAL.dll, which you'll want to replace with the new one. The game should start after this, if not it may be another problem.
http://connect.creativelabs.com/open...ds/oalinst.zip
Ok so that works fine, but the updater likes to replace the OpenAL.dll file when it updates, which reverts you back to the original problem, even when you set the file to read only. What I'm trying to figure is what permissions need to be changed to the file so that the DDO updater doesn't overwrite the file, but can still read from it. Any ideas?