Thanks for all the hints guys, but I wonder about this whole transformer thing.... Aren't they supposed to be used to go from low impedance (mic) to high impedance (recording device - in my case happens to be a VX Pocket in my laptop). According to Digigram, the VX Pocket's inputs are +10 dBu/Ohm > 10 kOhm
Is this considered high or low impedance?
Also, when I use the ASIO driver versus the MME driver for the card, I get much better sound levels.