I've edited your above post to remove your email address. There are "Bots" that crawl forums etc looking for valid email addresses to send spam/junk mail to.
I've just created a secondary email address for our communications. (I never give out my "real" email address.) You're the only person who has it. Please keep it only between us. I sent you a PM regarding the above.
From your "distorted sound" problem descriptions;
If all your other audio (system sounds etc) are OK, and it's just things you've "captured" or recorded,,,,,,
It sounds as though you might be using "speaker out" levels (as opposed to line level out) going to your line in for recording.
Or, your recording levels were set too high? (Control Panel/Sounds and Audio Devices/Audio/Sound Recording/Volume)
Or, your RCA-USB interface is a pre-amp of sorts, and it's boosting the signal. (This is a guess.)
I don't use WPM (7.1 or above) for
anything. It's too much of a resource hog, and it "takes-over" pretty well anything to do with audio. Especially with its DRM (Digital Rights Media) rules. If you use it to record anything, and you change machines, reload windows etc, it won't play back anything unless you've saved the ~license information~ and tell it where to find it.
If I want to "rip" a music CD, I use
CDEX 1.51
When I record, I use Audacity and export the cut(s) directly to a wave or MP3.
For playback of any audio, I use WMP 6.4. (C:\Program Files\Windows Media Player\mplayer2.exe). I set this player for all formats.