Lets make sure that Soundflower bits are not still lurking around on your computer.

Open up a terminal and type:

ls /System/Library/Extensions/Soundflower.kext

if you see–
ls: /System/Library/Extensions/Soundflower.kext: No such file or directory

then soundflower is not on the system! You may need to restart just to make sure all applications do not still think it is loaded.

but if you see–
Contents

then soundflower is still installed.

Please type:
sudo kextunload /System/Library/Extensions/Soundflower.kext

[ you will have to enter your admin password ]

sometimes the unloading may fail and you need to do the command again one or two times [ type uparrow, return ]

once the unload is successful, then you can blow away soundflower by typing:

sudo rm -r /System/Library/Extensions/Soundflower.kext

Once again, you will need to restart your computer for the changes to take effect.

You can either download Soundflower 1.2.1 here:

http://cycling74.com/downloads/soundflower

Or the experimental 1.3.1, which seems to work quite well and adds some functionality:

http://thirdcog.eu/apps/soundflower

All the best,
-Ben