Just an update:
It is happening when i try and get the input to go in to ableton...if i set up an audio channel with its inputs set to the ti's input1 & 2 i get the weird distortion (the signal does not seem to be overloading)
i dont want to use the input thru, because i want to effect the input before sending it back out the main outs.
hope this isnt too confusing

im confusing myself somewhat
thanks again, have a nice day
-Dan