Yes the interface is connected through USB and I have the audio input and output selected through reaper. I'm able to get sound running the guitar straight into the interface and into the daw.
I tried isolating just the guitar into the pod and listen through headphones and I'm still unable to get sound.
Line 6 support was able to get back to me and I laid out all of these details and they suggested that I take it back and have it replaced. I might try and have one of them see if they can get it to work before exchanging just to make sure.
Thanks for the replies and appreciate your suggestions!