Well, the problem is not really the noise itself. The noise is normal and comes from the pickups and cables mostly. The problem is that it has that noise-gate like effect (if I touch the strings it stops completely), and also that the sound distorts a little bit if you listen carefully.
I updated the line6 driver to the latest and the problem is gone with Line 6 ASIO. With ASIO4ALL the problem persists.
The thing is that with the line6 asio driver I cannot get the latency to reasonable levels (<18msec). With ASIO4ALL it is around 5-6msec back and forth which is great but the sound is problematic. The problem with the sound distortion-intermittent noise gate like effect etc, is the same regardless of the ASIO4ALL settings. Even if I increase the samples and buffer at maximum it persists.
any other suggestions perhaps?