I am having this same problem. All inputs will record distorted audio. The curious thing is that listening through headphones (headphone jack) or speakers (stereo output) in real time, the sound is good (using "Listen to this device")

So when I record, it's distorted. Also, when I monitor through Reaper it's distorted.

Do you think it's the Digi003 or may be the firewire card? I don't really know what to do. It started happening today, after I tried to record a condenser mic with or without Phantom Power. Initially I had the mic plugged to a mixer (which has phantom). The mixer was plugged to one of the inputs in my Digi003. It recorded distorted. Then I tried plugging the mic directly to the Digi003 and same thing.

Any help is really appreciated; I got this interface about 2 months ago second hand and I have been loving it so far.
Thank you.