After zillions of fruitless hours trying to get Puppy 2.17 sound working, I decided to give up.
I took a clean install of Puppy 4.1.2 (not upgrade from 2.17 !) and I have sound now. In fact everything worked.
System: Gateway Solo 2500
CPU: PII - 300
RAM: 128M
WiFi: PCMCIA RT2500