You have everything you need except a proper audio interface/soundcard. You need a 2 preamp interface that also has a MIDI port. You could get as cheap as a Presonus Firebox or reasonable as the E-Mu 1616M PCI card (best bet). Download Reaper and get to recording.

Thanks for the info. Im still not sure however, I know the SBLive! card is not the best but it has a breakout box with MIDI i/o and I have a separate audio interface. What advantage will be gained (aside from possible sound quality and/or latency) by having these in one box? Will I be able to record 2 audio tracks without haering the first dubbed onto the 2nd? I am sure I'm missing something in my understanding ....:)

Yes. Either of the two interfaces I mentioned will do at least 4 channels of recording at the same time. Two for the keyboard, midi from the midi controller, and a vocal mic plugged into the preamp portion.

Thanks, but why cannot I record 2 audio tracks separately .... what I'm looking for I think is how to connect the wires! I'm sure that's so basic to sound even stupid to ask but .... I'm asking ... !

You can. That is what a proper interface does. It brings in individual channels of audio to your computer to be recorded via a DAW program such as Reaper or Cubase or Logic or whatever. You Creative card was not designed to do that. Of course the routing has to be set up correctly in your DAW program for it to work. That will also allow you to play some tracks while recording a new track provided your computer system has low enough latency to make it work.

I haven't set any 'routing' in the s/w (Cubasis, but juts installing Reaper which seems to get lots of mentions on here). The audio is not coming through the SBLive card but via an FCA202 interface and mixing desk.

What I've been tring to do is record a piano track (audio) and then a vocal track on top while still being able to listen to the piano. I then get a second track with piano and vocal combined (with the piano effectively being dubbed onto the new track). Saem thing if I try doing a MIDI version of the piano and then record vocals on top (audio) ... I'm sure I've got wires in a mess somewhere ......

It sounds like you need to learn how to route the audio within Cubase LE itself. I don't use it so I don't know exactly where to point you except the manual which is pretty detailed. You are describing recording the main outs instead of recording the audio by itself. There are some videos on youtube that describe very basic DAW setup which you should watch. I doubt you have any wiring screwed up otherwise you wouldn't have any audio at all.