I think (yes...sometimes i do
) your sound trouble is due to your Operating System (WinXP) so you should be able to fix it simply following these instructions :
When RB3d is first installed on a Windows XP system everything works perfectly. However, when you bring the game up a second time you don't get any sound and the preferences you set may not be working. This is directly related to two preference files that RB3D writes to your hard drive at the end of each session....rbprefs.dat and mpprefs.dat. Windows XP seems to be unable to read these files.
The only way to resolve this problem is to delete the rbprefs.dat (for single player) and/or the mpprefs.dat (for multiplayer) EACH TIME BEFORE YOU START A GAME. The rbprefs.dat file is in C :SierraRedBaron3DData and the mpprefs.cat file is one level deeper in C : SierraRedBaron3DDataMulti (assuming that you accepted the default install path when you set up the game).
You will now have sound but you will need to reset your game preferences each time. Another suggested fix that I haven't personally tried is to create an empty folder called rbprefs.dat and another called mpprefs.dat (in the multi folder). I've heard that this prevents RB3D from overwriting the .dat files.
For the joystick problem, sorry but i dunno...when i played RB2 online i was famous for be the only one without it ... 8)