Im not sure why i wrote alchemy
Anyway, i originalyl added openal32.dll into the folder as recommended in another post since hammerwatch would just crash on start. This has cured the crash but i keep getting the initialise error instead.
Since the post, out of frustration i have taken the soundcard out of the pc and uninstalled all associated programs. Currently the only audio driver i have installed is the amd hdmi audio, which i use on the TV (its a steambox-a-like, previously i had the soundcard connected via optical to my amp).
Now I still get the openal initialisation error regardless of whether openal32.dll is in the hammerwatch folder or not. Its confusing me as this game worked fine when i had windows 7 installed ;(