looks like you haven't plugged your CD-ROM into your soundcard, right? to listen from audio cd's over your speakers you need to connect theCD-ROM drive to the soundcard. that would explain, why the vumeter doesn't show anything.
Thanks for your suggestion, Willi. I actually do have the connection, but it is the digital, not the analog connection. Perhaps the linux drivers for the SB Live! don't support using the soundcard's DAC for the CD? Anyone know?
Also, the vumeter doesn't show anything even when freeamp is successfully playing mp3 sound.