Alright, so I searched around a bit and didn't find anything...
I've recorded with the Zoom H2 and imported the files into Audacity before without this problem.
I recorded me playing with a couple of friends for about 35 minutes continuously, and want to break up the tracks. I import the files to Audacity and they are just uber super loud distorted maxed out crap.
I'm able to play the files in iTunes and FooBar just fine, but when I load into audacity it looks like this
Any ideas?