Deploy to 360 fail: audio engine initialization

Hiya guys, I was just wondering if any of you ran into the following problem. When attempting to deploy the game to 360 I get a unhandled exception error which leads me to the following code in TorqueEngineComponent.cs:

// create audio device
            if (_settings.EnableAudio && _sfxDevice == null && _settings.AudioGlobalSettingsFile != string.Empty)
            {
                TorqueConsole.Echo("Initializing audio...");

                try
                {
                    _sfxDevice = new AudioEngine(_settings.AudioGlobalSettingsFile);
                }
                catch (ArgumentException e) // catch this one so that we can continue running without needing update all of our xact files.
                {
                    _sfxDevice = null;
                    TorqueConsole.Error("TorqueEngineComponent::_SetupEngine - Failed to initialize XACT: " + e.ToString());
                }
            }

The game works fine under Windows. Any ideas?