I'm not sure about the XT - I have an X3 but I imagine things are very similar as far as ASIO. With the X3 and recording software, when you assign the X3 and its ASIO as the audio device in the recording software program it becomes the soundcard for both input/output. Your computer soundcard is bypassed. I think the only way to hear the sound is from the X3 outputs (including headphones). And if you set your recording software to monitor the X3 sound, latency is often a problem because all you're doing is directing the sound to travel over USB from the X3 to the computer and back again, still to eventually come out of the X3 outputs but now perhaps mixed/echoing with the original sound coming from the X3. I think the simplest method, and the one with the best result, is to use the X3 to monitor directly and turn off the monitoring feature in your recording software.