OK, I did all the steps you listed in the post above and my patches are still all screwed up. I don't understand what this thing did. I even tried restoring back to a backup I did last month and same results. When I look at some of my settings they are weird....for example when I look at the distance that the mic is from the speaker cabinet, it says it's at 2.3"......you can't even naturally select that....you can select 2.0" or 2.5" but not in between. All my patches are equally screwed up and sound really harsh and nasty.
I'm now on POD Edit 2.0 and Firmware Version 2.01.
Any help would be appreciated!