I have same problem. Can anybody help?
It happened when I updated drivers. Before this my pod xt live works great as a sound card!
Also I installed oldest drivers (3.4.3.6) but monkey shows that i have drivers version 4.2.6.9.
EDIT: I just checked - with my POD GX is this same problem.
EDIT 2: Problem solved. I had to disconnect wireless mouse and everything back to normal. Probably my computer has some problems with USB.