Thanks John and Everyone,

I am recording without any latency.
It seems the latency or delay is only in the monitoring or listening to the line-in.
The input going into the PC, which is what is recorded has no latency at all.

I unchecked the listen to this device again and ran my mixer into the line-in as usual. I plugged my amp direct into my mixer. As luck would have it, my Bose speakers have 2 sets of inputs. So I plugged the headphone out of the mixer into the Bose speakers to monitor the mixer (my guitar) with the MIDI playback.

After I recorded my first take, I played it back and there was no latency at all.

Now I'm left with one simple problem. My old XP machine had Audio Conversion build in. I can save these recordings to WMA or Wave, but I can't convert them to MP3 or change the volume or bit rate.

Any suggestion for a good MP3 audio converter program let me know. I know there must be free ones out there but I'll pay for shareware or a reasonable priced program if I can convert them into good sounding MP3s. Also if it could raise and lower the volume.

When I get a couple of quick test demos I'll post them. As soon as I find a way to convert to MP3.

Thank you all so much for all the time, work and research you all did. I was right at the end of my rope when John made me go back and setup the Windows Audio again. Then I just monitored my mixer. Amazing the delay in playback from Win7. But the input that gets recorded was right on the money. I played very syncopated lines to make sure it was on the beat and it was dead on.

Sincerely, Wayne,