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Rename the AVI folder to AVI_back.
Make sure you have no programs runing in the background.
(ICQ/Messanger, E-mail/Internet, Virus protection ...)
If that does not solve it try reducing the acceleration of your sound card.
 
Many games have problems with sound, take a look around at some other support sites and knowledgebases. ;)

I am not saying this is alright or anything and I DO know why this kind of thing happens to Paradox games, however I doubt the methodology will change. I am currently preparing a top 3 technical problem report for them that will hopefully help them with at least future games if not current ones.

Are you sure there is not a slider bar that controls the acceleration on your card?
 
Another option is to get a new sound card. Even an old Soundblaster live will allow you to adjust acceleration. You could pick one of them up cheap, again I know not a great thing to hear. Just providing another alternative.
I know I did not apreciate hearing it when Microsoft tech support told me my 1 yearold video card did not support their game and to get a new one. even though aparently it does support the 3 or 4 year old one in my second computer. So I do understand what you are going through.
 
I think reducing acceleration is mentioned, I will have to check, maybe an update is in order for all games.