Audio input making weird noises and echoing

Hi everyone,
just upgraded to mountain lion and very happy apart from one problem I found today.
My usb audio interface stopped working, so I went to the manufacturers website and upgraded to the lion driver for it...not ideal but figured it might work as I didn't bother updating to Lion.
This update made my mac recognise the device again however when I try and record or monitor from garage band it sounds horrendus. There is lots of sc-fi style noises, crackle etc and lots of echo.
I don't know if this is linkded but I noticed a few weird things happened to my audio when I installed a couple of trackers to try and create chip music. I have since deleted these but it hasn't helped.
If anyone has any suggestions for diagnosis it would be greatly appreciated.
Macbook pro 15.4" 2.53 GHz Intel i5 with 8GB ram.
Thanks in advance

I also have the same problem, and my songs as well were deleted, although after messing around with my ipod(turning it on and off/restarted it) my songs suddenly reappeared! This was without plugging it into my computer obviously because every time i would do that the programs running it would freeze.
So looking at all the frequent numerous posts about this problem it looks for now like the only option is to send it in to apple.
The good news is that if it is under warenty (which mine isn’t (sniffle)) then they will cover everything including shipping. They will look at it and probably replace it with a new or refurbished one. But you will not get the same ipod back, or the songs.

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    after having many problems, i managed to get my ipod into disc mode and format it. However, i'm still having similar problems. When i turn it on, it goes on normally but when i connect it to my computer it freezes it. When i try to restart the ipod while connected to the computer, i get the battery is discharged icon, or sometimes the sick icon first and then the discharged icon, and i'm not able to put it into disc mode. After i get the icons, the only way i can get it to start again is to toggle the hold switch many times (took me awhile to figure this out..). Also, the ipod makes a weird repeated disc noise sometimes when its connected or if i'm starting it. If i try to restart the ipod without it being connected to the computer, i get the sick icon until i toggle the hold switch. can anybody help? thanks!
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    Hello,
    If a sad iPod icon or an exclamation point and folder icon appears on your iPod’s screen, or with sounds of clicking or HD whirring, it is usually the sign of a hard drive problem and you have the power to do something about it now. Your silver bullet of resolving your iPod issue – is to restore your iPod to factory settings.
    http://docs.info.apple.com/article.html?artnum=60983
    If you're having trouble, try these steps at different levels one at a time until the issue is resolved. These steps will often whip your iPod back into shape.
    Make sure you do all the following “TRYs”
    A. Try to wait 30 minutes while iPod is charging.
    B. Try another FireWire or USB through Dock Connector cable.
    C. Try another FireWire or USB port on your computer .
    D. Try to disconnect all devices from your computer's FireWire and USB ports.
    E. Try to download and install the latest version of iPod software and iTunes
    http://www.apple.com/ipod/download/
    http://www.apple.com/itunes/download/
    F. Try these five steps (known as the five Rs) and it would conquer most iPod issues.
    http://www.apple.com/support/ipod/five_rs/
    G. Try to put the iPod into Disk Mode if it fails to appear on the desktop
    http://docs.info.apple.com/article.html?artnum=93651
    If none of these steps address the issue, you may need to go to Intermediate level listed below in logical order. Check from the top of the lists to see if that is what keeping iPod from appearing on your computer in order for doing the Restore.
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    A. Try to connect your iPod with another computer with the iPod updater pre-installed.
    B. Still can’t see your iPod, put it in Disk Mode and connect with a computer, instead of doing a Restore on iPod Updater. Go and format the iPod instead.
    For Mac computer
    1. Open the disk utility, hope your iPod appears there (left hand side), highlight it
    2. Go to Tab “Partition”, click either “Delete” or “Partition”, if fails, skip this step and go to 3
    3. Go to Tab “Erase” , choose Volume Format as “MAC OS Extended (Journaled), and click Erase, again if fails, skip it and go to 4
    4. Same as step 3, but open the “Security Options....” and choose “Zero Out Data” before click Erase. It will take 1 to 2 hours to complete.
    5. Eject your iPod and do a Reset
    6. Open the iPod Updater and click “Restore”
    For Window computer
    Go to folder “My Computer”
    Hope you can see your iPod there and right click on the iPod
    Choose “Format”. Ensure the settings are at “Default” and that “Quick Format” is not checked
    Now select “Format”
    Eject your iPod and do a Reset
    Open the iPod Updater and click “Restore”
    In case you do not manage to do a “Format” on a window computer, try to use some 3rd party disk utility software, e.g.“Partition Magic”.
    C. Windows users having trouble with their iPods should locate a Mac user. In many cases when an iPod won't show up on a PC that it will show up on the Mac. Then it can be restored. When the PC user returns to his computer the iPod will be recognized by the PC, reformatted for the PC, and usable again. By the way, it works in reverse too. A Mac user often can get his iPod back by connecting it to a PC and restoring it.
    Tips
    a. It does not matter whether the format is completed or not, the key is to erase (or partly) the corrupted firmware files on the Hard Drive of the iPod. After that, when the iPod re-connected with a computer, it will be recognized as an fresh external hard drive, it will show up on the iPod updater.
    b. It is not a difficult issue for a Mac user to find a window base computer, for a PC user, if they can’t find any Mac user, they can go to a nearest Apple Shop for a favor.
    c. You may need to switch around the PC and Mac, try to do several attempts between “Format” and “Restore”
    http://discussions.apple.com/thread.jspa?messageID=2364921&#2364921
    Advance Level
    A. Diagnostic mode solution
    If you have tried trouble shooting your iPod to no avail after all the steps above, chances are your iPod has a hardware problem. The iPod's built-in Diagnostic Mode is a quick and easy way to determine if you have a "bad" iPod.
    You need to restart your iPod before putting it into Diagnostic Mode. Check that your hold switch is off by sliding the switch away from the headphone jack. Toggle it on and off to be safe.
    Press and hold the following combination of buttons simultaneously for approximately 10 seconds to reset the iPod.
    iPod 1G to 3G: "Menu" and "Play/Pause"
    iPod 4G+ (includes Photo, Nano, Video, and Mini): "Menu" and "Select"
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    iPod 1G to 3G: "REW", "FFW" and "Select"
    iPod 4G+ (includes Photo, Nano, Video, and Mini): "Back" and "Select"
    You will hear an audible chirp sound (3G models and higher) and the Apple logo should appear backwards. You are now in Diagnostic Mode. Navigate the list of tests using "REW" and "FFW". The scroll wheel will not function while in diagnostic mode. For further details on Diagnostic mode can be found at http://www.methodshop.com/mp3/ipodsupport/diagnosticmode/
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    Or visit your local Apple Retail Store http://www.apple.com/retail/
    In case your iPod is no longer covered by the warranty and you want to find a second repairing company, you can try iPodResQ at your own risk
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    Just in case that you are at the following situation
    Your iPod warranty is expired
    You don’t want to pay any service charges
    You are prepared to buy a new one
    You can’t accept the re-sell value of your broken iPod
    Rather than leave your iPod as paper-weight or throw it away.
    You can try the following, but again, only do it as your last resort and at your own risk.
    Warning ! – It may or may not manage to solve your problem, and with a risk that you may further damage your iPod, which end up as an expensive paper weight or you need to pay more higher repairing cost. Therefore, please re-consider again whether you want to try the next level
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    http://eshop.macsales.com/tech_center/index.cfm?page=Video/directory.html
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    http://discussions.apple.com/thread.jspa?messageID=2438774#2438774
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    http://discussions.apple.com/thread.jspa?threadID=336342&start=0&tstart=0
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    http://askpang.typepad.com/relevanthistory/2004/11/meeting_thesad.html#comment-10519524
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    iPod Photo: unhappy icon + warranty question
    http://discussions.apple.com/thread.jspa?messageID=2233746#2233746
    4th Gen iPod Users - are we all having the same problem?
    http://discussions.apple.com/message.jspa?messageID=2235623#2235623
    Low Battery, and clicking sounds
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    Sad faced iPod, but my computer won’t recognize it
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    Sad iPod solution
    http://discussions.apple.com/thread.jspa?threadID=412033&tstart=0
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    http://discussions.apple.com/thread.jspa?threadID=443659&tstart=30
    iPod making clicking noise and is frozen
    http://discussions.apple.com/thread.jspa?messageID=2420150#2420150
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