Please Understand Our Situation.
I bought this game over steam a couple days ago, and I am running Windows 7 64bit.
Unfortunately, Like many other people I have found that my game will not work properly. Upon downloading my game, I tried to run it, but it stops responding just after the splash screen leaves. Now of course, I was pretty pissed when I spam clicked my game button, and each time that ominous "not working" box would appear. So what did I do? I searched the internet for a solution. After reading around for a bit, I found a solution in which I change my default.ini file, which I could do by going to steamapps/common/bioshock... bla bla bla. I did this, and I was hopeful! My game actually started! But after the initial cut scene, I noticed that there was no sound at all... So here was the predicament, play the game without sound, or no game at all.
So after looking at all of the fixes suggested:
Switching to stereo mix - It is not there, I am not stupid, I have hidden and disabled devices showing, it is NOT there.
Running in compatibility mode - The problem here is that you cannot run steam games with compatibility mode, the game is a web shortcut, not an .exe file, therefore when you go to it's properties, there is no option to run in compatibility mode.
Updating audio drivers/DX - Done, still does not work.
Downloading OpenAL/ALchemy - Downloading OpenAL does nothing, nothing is installed even after it says "Installation Complete". And ALchemy only works if you have a Creative X-Fi/Audigy card, which I don't.
So please, PLEASE, find me a fix that is not one of the above. I only spent $5 dollars on this game because of the sale, but I could have just as easily pirated it and not have supported the game developers, I and everyone else having the same problem as me deserves a fix.
I'm also running Windows 7 64bit, and am having same problem with bioshock, just bought it from steam and it crashes after logo. I didn't get it to work all the way, the game still crashes shortly after entering the lighthouse.
You can edit Bishock.exe properties by going to steamapps and finding bioshock.exe, right click it and try switching compatibility mode to XP sp2, I got the game working, but I had to tweak my registry a bit to get the sound working.
I'll post if I find way to fix crashing, but try changing the compatibility mode, and post if you get it working.
I have literally been searching for hours today, but I finally got it working!
So basically, what the problem was, is my outdated sound card that my computer was using turned out to actually not be able to handle the FMOD audio strangely just for bioshock. Anyways, how I troubleshooted was I went into my sound>PLAYBACK devices and disabled ALL of them. With this, the game should run without any changes to the default.ini file. Now in order to actually have sound, you need to go and re-enable the sound devices, if you enable one, and the game doesn't start, you know it cannot be on. Here's what mine looked like: