Turns out this is a common bug. The newer XP drivers (version 3507.0.0.0 dated 8/10/2001) still exhibit this bug in NetMeeting. It supposedly only affects 5.1 users but that is unconfirmed. These new drivers do however fix quite a few of XP driver annoyances. When I set the card to use all 4 speakers in Windows (Control Panel/Sound and Audio Devices/Advanced/Speakers) all applications appear to work correctly and output to 4 speakers. New programs to work correctly include Half Life (unsure how the positioning is, all I noticed was 4 speakers playing) and AOL Instant Messenger. I'm sure there are many others, but these are just a few examples. I will have to try a Liveware 3 hack at some point, I really want to have my web cam and audio work correctly. On a side note... Web Cams are worth the $25 they cost.
