Through headphones, out of the HD500 or computer the signal is clean. but after guitar is recorded there is noticable digital distortion occuring - as if levels are too high even though sounds fine while recording and all meters read way under 0db - i even reduced levels on pod and computer). As a side note, I am using dual amps, panning hard left and right - and it is only happening on 1 of them. Also if I record line out of pod into line in on computer - the sound is fine.
Am I doing something wrong? Are the outputs on USB hotter than line out?
On some computers the USB sound can be too powerful. The more recent drivers for the POD HD include settings that allow you to turn down the gain significantly. More details at the thread here --> http://line6.com/support/message/340387#340387
1 - Control Panel -> Hardware and Sounds -> Sound
2 - Recording -> Digital audio interface (must be Line 6 POD HD) -> Double click
3 - There are four Tabs, click on 'Levels' (the last one)
4 - Reduce the Level to around 75 / 80 or less... only to cut the clipping... then you raise it until you get the limit before clipping