Thanks for the quick response.
Forgive me, but I'm computer stupid so forgive me if my explaniation is a bit off...
I am plugging into one of the two USB ports on the front of the computer. There are more ports on the back, not sure if that'll make a difference?
I've tried this with the software included (Live), Reaper and Audicity. All have the same problem.
I'll look at the startup portion when I get home tonight, but I'm thinking it's Vista?