Found a workaround:

Install GNOME Alsa Mixer

sudo apt-get install gnome-alsamixer

Now open GNOME ALSA Mixer from Applications -> Sound & Video -> GNOME
ALSA Mixer

Choose the tab: “CA0106…”

Turn on “Audigy Analog/Digital Output Jack”
=> Deselect IEC958

That’s it now your sound should work as normal

Testing:
ubuntu-bug audio

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https://bugs.launchpad.net/bugs/731660

Title:
  [Ubuntu 10.10 0 - Soundblaster CA0106] ALSA test tone not correctly
  played back & no sound playing in any application, including system
  sounds

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