Do you mean FMOD_ERR_OUTPUT_DRIVERCALL? Look up the error code yourself, look at the log output with fmodexL version, and find out what the problem is. It may be something to do with an uninitialized variable that you are using with fmod. Remember release mode is your program, it doesnt have anything to do with fmod.
No, besides the fact that it isnt reallly a shippable startup sequence (see http://126.96.36.199/forum/viewtopic.php?t=9305) but you didnt actually say what function returned that error.
Try forcing your wavebanks to software = yes or just use System::setHardwareChannels(0,0,0,0) to see if there is a hardware sound being created that is falling over on your particular soundcard / driver combo.
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