I've recently bought and installed my new 7.1, 24-bit sound blaster live! card. Using the software provided by creative, I can convert my mp3's to 96kHz, 24-bit wave files, but I only hear the sound for these files through two channels (I have a 5.1 ch speaker arrangement). I can't convert to WMA lossless or WMA pro in 24-bit 5.1 either. Are there any audiophiles out there who can help me with this? I think I need a program to convert the files to my desired format maybe someone has such a program?

Your MP3 are in stereo - two channels. Any "conversion" to 5.1 channels would be just fake - you can't create any more information that is already there. There are plugins and filters that let you play normal stereo as (fake) surround (and create extra fake "surroundness"), which is IMHO way better than going and ruining your whole music collection..