Hi!
I think many people are having difficulties running SDiver in paralell with their sequencer of choice. If you go to
http://www.egroups.com/group/sounddiver-users and do a search on, for instance, Sounddiver, Hubi's, etc., you should come up with fairly detailed advice re what you are trying to achieve. I have myself posted questions there regarding this very issue, and I got an answer from E-magic themselves (Michael Haydn). Unless the drivers of your soundcard are multiclient you will need to install the dreaded Hubi's Loopback Devices and "do stuff" to your system files. However, I never tried to implement the necessary changes to my system in order to enable paralell use of SDiver and sequencer - I just don't like messing around with sysedit and stuff like that.
I wish you all the best - and please let me know how you fare,
Magnus