Thank you to everyone who helped me get my gumstix  working the way I need it to be.
(Patrick D, Dave H, Craig H)

Here's some info *newbie* users NEED to know when setting up the audiostix2 on a gumstix.
It is all here so users don't need to search many pages to setup audiostix with gumstix.

1) enable mmc by editing the  modules file in /etc  (using command vi /etc/modules)
   
It should look like this...
    # MMC support -- uncomment the next two lines to enable MMC if not using CF
    mmc_block
    pxamci

   #Compact Flash support -- comment next line to disable CF if using MMC
   #pcmcia

2) My gumstix shipped to me WITHOUT support for gpio 0 - 9 on audiostix.
     It was added in a later build. 
     You'll need to upgrade to a newer kernel. See gumstix website for instructions.
     Setting up a linux machine to build a gumstix kernel took way more time than it should have.
     Many packages needed to be downloaded.
    If you do not want to build your own kernel, you can download one here (no c++ support I think):
    http://sourceforge.net/projects/gumstix

3) gpio /proc/gpio entries will not show up until the audio is enabled using :
        modprobe snd-pxa2xx-ac97
    modprobe snd-pcm-oss

    I copied the S50httpd script in /etc/init.d and renamed it to S60audio and added those 2 lines in the start area.
    Now when I boot, the audio is always enabled.  (Btw, the lines above are different when using the older boards.

4) to set a gpio as input use echo "in" > /proc/gpio/UCB1400-0-0    (where last digit is gpio number)
   So use   echo "out clear" > /proc/gpio/UCB1400-0-1   (to set gpio 1 as output and clear the line)

Dan.