makz86: Go to the system folder in your unreal folder and open the unreal.ini. Under [Galaxy.GalaxyAudioSubsystem] there is an option "UseFilter" write False instead of True. Worked for me. Hope it will work for you too ;-)
I tried that, but Unreal Gold still has very staticky music on Windows 7. Is there any other way to fix the sound issue? Might there a program to separately install OpenAL so Unreal Gold doesn't have to use the "GalaxyAudioSubsystem"?