creating audio "on the fly"

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I guess you could make samples that fade in and out at the ends and then they can overlap a bit, if it were a sort of new-age kind of music or something. :-)

Or is there some way to do a constant audio stream from a looping writeable buffer?

Or is it possible to play a sample, and modify the sample itself, at the same time? Then you could loop the sample, and write new data to it like a circular buffer while it plays?