hm still having distorted sound with warzone 2100:
...
I: sink-input.c: Created input 3 "ALSA Playback" on alsa_output.pci-0000_00_14.2.analog-stereo with sample spec s16le 2ch 44100Hz and channel map front-left,front-right
I: sink-input.c:     media.name = "ALSA Playback"
I: sink-input.c:     application.name = "ALSA plug-in [warzone2100]"
I: sink-input.c:     native-protocol.peer = "UNIX socket client"
I: sink-input.c:     native-protocol.version = "16"
I: sink-input.c:     application.process.id = "5496"
I: sink-input.c:     application.process.user = "jfd"
I: sink-input.c:     application.process.host = "cutter"
I: sink-input.c:     application.process.binary = "warzone2100"
I: sink-input.c:     application.language = "de_DE.UTF-8"
I: sink-input.c:     window.x11.display = ":0.0"
I: sink-input.c:     application.process.machine_id = "e042fa99bcfcf79205c5f7f44b2a687a"
I: sink-input.c:     application.process.session_id = "e042fa99bcfcf79205c5f7f44b2a687a-1263033931.272866-1882946726"
I: sink-input.c:     application.icon_name = "warzone2100"
I: sink-input.c:     media.role = "game"
I: sink-input.c:     module-stream-restore.id = "sink-input-by-media-role:game"
I: protocol-native.c: Requested tlength=92,88 ms, minreq=0,72 ms
D: protocol-native.c: Early requests mode enabled, configuring sink latency to minreq.
D: memblockq.c: memblockq requested: maxlength=4194304, tlength=16384, base=4, prebuf=13568, minreq=2820 maxrewind=0
D: memblockq.c: memblockq sanitized: maxlength=4194304, tlength=16384, base=4, prebuf=13568, minreq=2820 maxrewind=0
I: protocol-native.c: Final latency 108,88 ms = 60,91 ms + 2*15,99 ms + 16,00 ms
D: alsa-sink.c: Latency set to 16,00ms
D: alsa-sink.c: hwbuf_unused=349948
D: alsa-sink.c: setting avail_min=88017
D: alsa-sink.c: Requesting rewind due to latency change.
D: alsa-sink.c: Requested to rewind 352768 bytes.
D: alsa-sink.c: Limited to 349000 bytes.
D: alsa-sink.c: before: 87250
D: alsa-sink.c: after: 87250
D: alsa-sink.c: Rewound 349000 bytes.
D: sink.c: Processing rewind...
D: sink-input.c: Have to rewind 349000 bytes on render memblockq.
D: source.c: Processing rewind...
D: protocol-native.c: Requesting rewind due to end of underrun.
D: alsa-sink.c: Requested to rewind 352768 bytes.
D: alsa-sink.c: Mhmm, actually there is nothing to rewind.
I: alsa-sink.c: Underrun!
I: alsa-sink.c: Increasing wakeup watermark to 7,98 ms
D: protocol-native.c: Underrun on 'ALSA Playback', 0 bytes in queue.
D: protocol-native.c: Requesting rewind due to end of underrun.
D: alsa-sink.c: Requested to rewind 10252 bytes.
D: alsa-sink.c: Limited to 748 bytes.
D: alsa-sink.c: before: 187
D: alsa-sink.c: after: 187
D: alsa-sink.c: Rewound 748 bytes.
D: sink.c: Processing rewind...
D: sink-input.c: Have to rewind 748 bytes on render memblockq.
D: source.c: Processing rewind...
D: alsa-sink.c: hwbuf_unused=0
D: alsa-sink.c: setting avail_min=87841
D: module-suspend-on-idle.c: Sink alsa_output.pci-0000_00_14.2.analog-stereo becomes idle, timeout in 5 seconds.
D: alsa-sink.c: Requested to rewind 352768 bytes.
D: alsa-sink.c: Limited to 1152 bytes.
D: alsa-sink.c: before: 288
D: alsa-sink.c: after: 288
D: alsa-sink.c: Rewound 1152 bytes.
D: sink.c: Processing rewind...
...

$ cat .openalrc 
(define devices '(esd)) #fix for warzone 2100 sound with openal

$lspci
00:14.2 Audio device: ATI Technologies Inc SBx00 Azalia (Intel HDA)

running karmic with newer kernel (for working radeon kms :)
$ uname -a
Linux cutter 2.6.32-9-generic #13-Ubuntu SMP Thu Dec 17 17:01:59 UTC 2009 x86_64 GNU/Linux

not sure wich kernel is more recent ... mine or linux-image-2.6.32-020632-generic_2.6.32-020632?