SBLive works fine in WinMe (or at least as well as it did under Win 98).
If you get the first generation of cards, get the WinMe drivers off the web. If you get a 5.1 series card, the latest drivers are on the cd.
I would advise you to disable SB16 Emulation immediately after installing the drivers. And Using Liveware is up to you, but if you computer starts acting funny, uninstall Liveware and just use the card with the drivers only.