I have a soundblast live as well, and the way I set up mine is that the two holes closest to the game port are for front and rear channels, the middle one (the red one) is for the mic, and then others are for line in and something else. If you want to plug in your mic, i believe it should go in the middle one, the red hole. The black and green holes (for front and rear channels) could be used for your headphones. Not quite sure which hole to use, but you can use trial and error
Sounds like you have 7 cables to connect, so I would suggest getting a few connector cables from Radio shack or your nearest electronic shop. You can combine lefts and rights and not have headphones, (maybe there is a headphone jack on speakers somewhere?) or maybe combine left channels and right channels into one plug and then have headphones. All sorts of combinations, but it sounds like you are going to need to get a few cable connectors (some Y connectors, two cables to one cable). Hope this helps somehow, good luck