This is kinda interesting;

Since my UX2 is serving as a doorstop for the time being, I tried using my Korg PX5, which has a USB connection.

I didn't update the driver, just plugged it in. It records fine. No crackling.

I bought it way before Lion came along. Makes you wonder what's going on.

I've reinstalled Pod Farm, Line Monkey and the drivers but not change for me either. Still an awful crackling. I hope Line 6 come up with a solution soon.

Sme Problem Here !!! any solution???

I've tried that. Support asks for details about my computer and asks for a sytem profile print out. Also asks for a print out of the LIne 6 Monkey diagnostics option (which doesn't seem to be there anymore).

After providing as much info as I can, support says that there is nothing they can do at this time.

They are not admitting that there is a problem. Hopefully there'll be an update soon.

I use Line6 GX guitar input device. I get crackling usually with 10.8 BUT... if I run POD Farm before I start Logic Pro, then I no more get the crackling and all is fine!

Everyone definitely needs to follow the directions above and fill out a support ticket. I've done everything including a fresh install and can confirm the very same happens to me. I cannot record anything without a nasty crackling.

I've already created my support ticket, sent my specs, logs and audio samples to Line6. Please do the same so we can get back to life again!

You don't need to use PodFarm, you just have to start it before you start using your DAW.