I found out how to solve it on the forums, the directions given in star-made launcher under "sound problems" did not specify that both 64 and 32 versions of openAL exist in both sys32 and syswow64, and that the file you need to replace depends on your Java Version not what type of system you have. You need to replace the 32 bit version in both directories if you have 32 bit java, and 64 bit if you have 64 bit. In my case I had a 64 bit system but only had 32bit java. I also tried the same thing with 64 bit java and it worked (with changing the 64bit OpenAl files). It appears that a lot of people had the same problem as me on the forums http://starmadedock.net/threads/problem-with-audio-looping.4631/#post-74002. I would suggest changing the tool-tip, a lot of people seem to be getting the idea that this is going to get "fixed", or will simply get frustrated and not play.

It should clarify about java 32 and 64 bit versions.