Hey, thanks to both who shared some thoughts. To Yo-C, the noise I am getting are not exactly what I can hear on that youtube video but they might just be originating from the same problem.
By talking to some in-store professionals in musical audio, it seems my problem might be a faulty USB controller. One assured me that I would solve this by installing a PCMCIA usb card in my laptop, thus bypassing the built-in usb low-end controller. Unfortunately, my laptop does not have a PCMCIA slot so I'm doomed. One idea I had was to try with a shielded usb cable (the one with the round beed at one end) but again I was told that would be useless. Apparently a usb cable cannot transfer interference from the pc to the device. But then, how come they make those usb cable? I have ordered one such cable and will try as soon as I get it and let you know.