I have the same problem. I've just installed the USB MBOX2 Beta Drivers on my Win7 x64 PC and the audio is distorted. PD HD3 +192I/O works fine on this system, but I've just moved the HD cards on to another place so I'm needing PTLE on this system now.
The Avid website does say that they're aware of the distortion issue, so I'm hoping it gets sorted.
Quote:
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Alert: We are aware of an issue with Mbox 2 USB devices and the current beta drivers for Windows 7 that may cause distortion during playback. We are looking into the problem and will post an update when more information is available.
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It's definitely the USB MBOX2 drivers because the box works fine on my XP system and the leads all check out with other audio sources. And, using Cubase or Microsoft Media player with the MBOX2 is distorted, but using the internal sound card on either Cubase or Media Player is fine. Reboot doesn't help, nor changing any of the MBOX2 settings.
Mike.
6 Core i7 X980 @3.33GHz
Gigabyte Mobo
AMD ATI Radeon 5450 Graphics Card