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It was the card, as the program was just sitting there waiting for audio. I could unplug the left or right input and kill the card. After amusing myself, watching the card work and then not work, I tried restarting the card. That seems to make it behave, but that's not good enough for me.
Huh? Just unplugging a channel 'killed' the card? Wow...
Too bad you didn't run the latest beta version (now released as 7.40), because it contains some auto-restart code. I don't know if that would solve this issue - but I'm curious. (If you have the system off-air now and you can reproduce it, could you test it?).
What's new in version 7.40 is that the sound card code closes and re-opens all sound cards if no audio arrives for a while. Now I don't know what you did to 'restart' the card - was that with the RESTART button in Stereo Tool? If so, this might work...