I think you are killing your frame rate, and are seeing the first (gray) frame only.  You are killing performance because you are creating as many as one sine wave object per pixel, per frame, which comes out to 320,000 sine waves or so, which is massive polyphony, and probably way more than Ess can handle.

In a typical music synthesis program, you would create most of your sine waves in the setup function, not in draw, and you would typically create no more than a few hundred, and probably far less than that.

Perhaps I'm putting the audio code in the wrong place?

This is a really good illustration of why it's better to have written the code yourself in the first place, rather than copying an example you don't understand.

1) Read the Wikipedia entry on Conway's life, so you understand what's going on thoroughly.  Then walk through your own code, line by line, and figure it out, or better yet, rewrite it from scratch, attempting to do what the Wikipedia article describes.

2) Remove this line completely from your draw function:

myWave1=new SineWave(480,.1);

Allocate all your wave forms in your setup function, instead.  You can start with just a single sinewave oscillator.

Then in your draw function, count the number of live cells, and use that number to change the frequency of your sine wave.  This will produce much better performance.  So you would remove all existing music code from your draw function, and then add something like this:

1. int cnt = 0;
2.  for (int x = 0; x < sx; x=x+1) { 
3.     for (int y = 0; y < sy; y=y+1) { 
4.       count += world[x][y];
5.    }
6. }
7. // use cnt here to change the frequency of your oscillator
8.