Original Blogger tags: Soundflower
I note that over on Google Code the maintainers of Soundflower seem to again be responding to bug reports and have released updates — the latest .dmg is 1.5.1 as of this writing.
See the Google Code site.
I have downloaded 1.5.1 but have not yet tested it to determine if the particular issues I was having seem to be fixed. They were not explicitly addressed (that is, those issues were not touched in the bug tracking database), but at least I can hope.