Oh, and you're using the 9.06 002 rack driver right?
http://akmedia.digidesign.com/suppor...81451.zip?ns=1
that's the latest Win 7 official digi 002 RACK driver
And yes, you might simply have a latent plugin in the signal path, as Led says. I find topics like this so frustrating when the user provides such scarce info.