By using the USB interface with the ASIO drivers, you do add a noticeable degree of latency for live play, which is why the analog/line-outs, with "Tone Direct" are preferable for live play/monitoring situations. I use the ASIO drivers strictly.
I have been using a UX-2 as my PC input device for years without noticeable latency. The GX can work just as well using the line-out. There are two ways to make this work for you:
1. Take the analog outputs/line out and feed them to the aux in of your PC's sound card (which is what I do)
2. Attach the analog outputs/line out directly to a powered speaker system (this is usually what Line 6 recommends, but I disagree)
Note that with the first option, you want to keep your PC's sound card as the default output device, and make sure that the aux input is enabled.
Oh... I can certainly do that. I was under the impression that outputting the analogue signal and sending it back to the PC would be... kind of pointless and weird.
If all it takes is reconnecting the whole thing with an extra cable, then I'm game!
But I'm curious - what are the ASIO settings inside the POD Farm software for? I've been playing with ASIO in general for the past hour or so - first, I had issues getting any sound at all (I'm using a nifty ASIO test sound generator I quickly found via Google). Fiddling in kX drivers I managed to hear said application. But, subsequently, the POD software doesn't seem to remember that I want to use the ASIO in the settings.
Again, if all it takes is an analogue cable to connect the POD to the line-in on my sound card, that's fine - I'm just curious at this point.
EDIT: Is there any difference between using the analogue out and the headphone output on the POD Studio?
Actually, that probably doesn't matter. What I have is borrowed - I'll likely buy the Studio GX, and that only has a single output.