I would like to thank everyone for their help in resolving my problems with MC and ASIO. Unfortunately, the problems persist.
I uninstalled MC16 (libraries and all) and disabled MS Media Center. Then ran CCleaner and rebooted. Reinstalled MC16 and the problems remain.I can, however, add some additional information.
Yes, DirectSound sounds normal, not thin and with the chorus effect like ASIO. I also tried Kernel Streaming mode but it sounds just like ASIO.
Whether in DirectSound, Kernel Streaming or ASIO, if I engage or disengage Creative Crystalizer it causes the PC to instantly reboot. I had originally thought this problem didn't exist with DirectSound but upon further testing it happens regardless of the mode.
Surround sound is only possible if I engage the Creative CMSS prior to starting MC16. (I have not tested Dolby Digital or played movies yet.) Trying to engage surround from MC16 DSP settings results in an error message that the sound card doesn't support this, and it asks if I would like to listen in two channel mode. Yet, the card works fine in these modes with other players.
I have tested three other popular media players and they all seem to work without any problem. Their must be something set wrong somewhere in MC16.
MC16 is the media player best suited to my needs and I really hope that I can get it to work. The media server via my Android phone is awesome!