@bloodline
Sure the Live! comes with Windoze software to encode MP3's but the card does not do it in hardware!!!
The Live! card is just a bunch of DACs and ADCs with a DSP for adding effects, it's not designed to encode mp3s 
even if so, who gives a crap, it can still do it!!!!!
there seems to be enough technology on the card to handle it
Sound Blaster Live 5.1 SPECIFICATIONS 
Wave-Table Synthesis 
E-mu Systems®, Inc. EMU10K1™ music synthesis engine 
64-voice hardware polyphony with E-mu's patented 8-point interpolation technology 
Uses SoundFont® Bank technology for user-definable wave-table sample sets which include 2MB and 4MB sets 
Load up to 32MB of samples into host memory for professional music reproduction 
Scalable PCI wave-table synthesis architecture with multi-timbre capability 
48 MIDI channels with 128 GM & GS compatible instruments and 10 drum kits 
Effects Engine 
E-mu Systems, Inc. EMU10K1™ patented effects processor 
Support for real-time digital effects like reverb, chorus, flanger, pitch shifter, or distortion across any audio source 
Capable of processing, mixing and positioning audio streams using up to 131 available hardware channels 
Full digital mixer maintains all sound mixing in the digital domain, eliminating noise from the signal 
Customizable effects architecture allows new audio effects to be downloaded from the Web 
Full bass, treble, and effects controls available for all audio sources 
EAX™ and 3D Audio Technology 
User-selectable settings are optimized for headphones or 2, 4, or 5.1 PC speaker and home stereo systems. 
Dolby® Digital audio decoding to 5.1 speaker channels in analog or digital modes 
Upgradeable 3D audio architecture allows for improvements over time 
Accelerates Microsoft® DirectSound® and DirectSound® 3D 
Hardware acceleration of EAX™ in games 
Creative Multi Speaker Surround™ (CMSS) technology places any mono or stereo source in a 360º audio space 
EAX™ preset effects: user-selectable DSP modes that stimulate acoustic environments 
Hollywood-Quality, 32-Bit Digital Audio Engine 
Processes bit resolutions from 4-bit to 16-bit 
Processes sample rates from 5kHz to 48kHz 
All sound sources are bundled with 32-bit precision for highest quality output 
Analog and digital I/O modes supported 
Hardware full duplex support enables simultaneous record and playback at 8 standard sample rates 
Utilizes AC '97 Audio Codec 
MIDI Interface/Joystick Port 
Supports Sound Blaster® MIDI and MPU-401 modes 
IBM® compatible 15-pin joystick port with analog support 
Support for digital and DirectInput™ game devices 
On-Board Connectors 
Analog/Digital Out (Analog Center & Subwoofer/6-channel S-PDIF Output) 
Line In 
Microphone In 
Line Level Out (front) / Headphone Out 
Line Level Out (rear) 
MIDI / Joystick port 
Telephone Answering Device In 
MPC-3 Analog CD Audio In 
Digital CD Audio In 
Expansion header for Live! Drive series or Optical Digital I/O card 2 (available separately) 
Works with the Following Standards: 
Windows® 95, 98, 98SE, NT4.0, 2000, Millennium Edition and XP 
General MIDI 
MPC-3 
Plug and Play 
Sound Blaster® PCI 
EAX™ 
Microsoft® DirectSound®, DirectSound® 3D, and derivatives 
PCI 2.1 compliant 
AC '97 compliant 
Dolby® Digital