PNP cards have a ROM 0n them with multiple configuration possibilities in order of descending priority.
The ES1868 has as top priority a configuration, the "preferred" one, using IRQ 5.
Below that is "acceptable" priorities, including those where the IRQ is allowed to be 7.
Finally there are "functional" priorities where the card has to go without certain resources.
You can see these configurations using PNPDUMP from isapnptools. They correspond to the default configuration 0000, 0001, 0002, etc. in Windows 9X. This is why sometimes it will not allow you to customize any of the resource settings until you switch to one of those higher numbered configurations.
Speaking of Windows 9X, because it goes into the ESCD ROM and mucks with these settings also, getting picky about IRQ settings and such while having PNP cards, a PNP BIOS, and Windows 9X can get frustrating. When I had ISA cards (like ethernet cards and internal modems) that could be jumpered or soft configured to NOT be a PnP device, in period correct times, I always made them a non-PnP one. This forces Windows 9X to work around them, rather than insisting on stupid things like ethernet on IRQ 3 and sound on IRQ 10 when 9, 11, and 5 are free.
edit: on that topic, in Device Manager, double clicking Computer, Windows 9X has its own, completely separate system of marking IRQs, I/O ports, and DMA channels as reserved, separate from your machine's BIOS. You might find it necessary to flag IRQ 5 there as well if you want to force the system to bump the sound card to 7.