Here is the latest attempt to fix this thing.
I deleted ALL sound card drivers from the system. Removed the sound card and let the system boot up a few times to make sure it was clear. I then reinstalled the old SB16 card and got nowhere.
I removed the old SB16 card uninstalled sound drivers and let system run without them.
Installed an Avance sound card with minimal drivers. None of the fancy mixer drivers just the basic sound and joystick driver set. Left the joystick off and ran AH. Got buzzing sound and stutters using keyboard and mouse to fly. As soon as a "new" sound started over the engine the stutters would start. The stall warning buzzer would do it same as firing guns.
Installed the stick and calibrated it. No change.
I then played musical card slots with all the PCI cards in my system. No change in the AH performance. Got LOTS of experiance setting up my periferals but no help in playing AH.
AH is the ONLY program this happens in. This cannot be a systemic problem that ONLY affects AH. I have other games, including online, that this does not happen in. There have been too many others complaining about stutters for this to be an individual computer problem. It's not net related as it happens offline just as much and as bad as online. I clear off everything in the background to make sure I have enough RAM open to run the game. Before I start I have over 85% of my system available with 128 megs RAM. I'm not bogging down the machine.
I'm out of ideas. Thanks for those who contributed, I tried every one of the suggestions you posted. If anyone, ESPECIALLY THE AH CREW, has any more suggestions I am open.

Mav