I think the exclamation mark for Rage Theater Audio would only be an issue if you are planning to select that Audio Device in
Virtualdub, instead of selecting the Audio Device you are directly using, i.e. the audio card or onboard audio. The ATI Rage Theater Audio, I would think, is only if you are passing Audio to your Video card via a cable connection between the two. The video card doesn't have any built in audio capture capability, I don't think. My ATI card certainly doesn't.
I don't have that model. But I do have an ATI video card, and a separate audio capture device that is not connected to my video card. I've had no issues with video/audio sync or delay in my setup. Of course, you could get audio drifting over time without an external Frame TBC. In that case, the best you could do is try to configure
Virtualdub to recover video/audio sync (see Virtualdub settings guide on the forum for more on that). I select the actual audio device in Virtualdub, not the ATI audio device.
However, if you are running a cable connection directly between your video and audio devices, then the only thought I have (without resorting to a clean XP install) is 1.) create a System Restore backup point via the built in XP system restore tool (in case something doesn't go as planned), 2.) try to completely uninstall the driver (try via an option in the Add/Remove Program list first, then try removing driver and/or device in Device Manager, 3.) Reboot and cancel any attempts by Windows to find a Driver for your Audio Device and confirm that there isn't an ATI Rage Audio Device in the Device Manager (or at least that it doesn't have any driver installed if it is present), 4.) Be sure the drivers for your actual audio device (i.e. audio card or onboard audio) are installed without issue in Device Manager, 5.) Install the ATI Audio from disc, 6.) Reboot
Best of luck to you.