Have you got surround sound 5.1 system? If so go into your auido options for your soundcard and set it to 2 speaker not 5.1.
I have the same problems with Max Payne 2 and this is the only way to get the sound working properly.
If you still have problems look here: http://forums.3drealms.com/ubbthread...Board=max2tech
I sorted out my auido problem from these forums, very helpfull.
Hope this helps!