I had the same problem
Hey, I loaded my new Axiom 49 yesterday and after I finally got the drivers to work I had trouble getting the controller to make sounds when I used the same software you loaded. The solution I found was to go into advanced audio options in my Windows control panel and there I found that my computer defaulted to recognizing an internal Windows MIDI device. If your M-Audio driver loaded properly, you should be able to change this to the Axiom.
Then, go back into the Live music software and try selecting it as your MIDI device, it should be a visibly available choice now. Hope that helps.