I agree that it SHOULD work, but.....
It might help if you could verify that the 003 is fully functional. If you have an iLok, maybe do the 30-day trial of Pro Tools to check? Beyond that, my feeling(just 1 opinion here), using DIGI/Avid hardware with Pro Tools makes tons of sense. Using it with other DAW's...not so much
Does the 003 show up in Device Manager>Sound, video and game controllers? If not, then its not going to work until it does appear there(I suspect it does because you did get bad audio. What exactly is "V8 generic standalone asio avid driver" and where did you get it? If V8 refers to Pro Tools 8, that may be the issue(more details on the computer, please)
ASIO4ALL is sort of a "last-ditch" option when all else fails(and in this case, ASIO4ALL failed too) so do uninstall it(on my 003/Windows rig back in the PT10 era, it actually hosed all my audio until I removed it)
Is this the 003 controller or 003 Rack? The controller might not work at all as a surface as I don't think it will emulate MCU or HUI