No, it won't work on Windows 7 as there's no compatible driver for it. It's an old, discontinued model which hasn't received any new drivers since Windows XP.
Had the Same problem (today) updating a XP PC (P4 series) to Windows 7... (since XP is now discontinued) BUT No driver for the Soundcard (SB Live! 5.1)
Did a google search, tried the 3th party driver (works) but did get errors and even a BSOD...
SOLUTION That Works Using Creative Drivers
Find your installer CD that came with your SBLive.. (or find torrent of the ISO -> search for: Soundblaster)
Copy the Driver directory to your HDD (or USB drive)
then select the EXE file in the Root and go to properties, then select to run in: XP SP2 comp. mode.
Then run the EXE..now it will
install the "old" WDM driver and you got sound... I disabled the Game Port after install..
Seems to be stable.. got sound and no futher issues...
Hope this helps....