Make sure you are using the -20db attenuator onboard the DA-P1 when going mic in. I'd try this without the outboard pre and without using external attenutors first. The P1 has a pretty decent mic preamp, so it might be just as good or better than the M-Audio one. The P1 preamp can distort at very high sound pressure levels, but you should first try it with the -20db pad engaged and see what happens. The -20db attenuator circuit itself will not cause any undue noise or static, but the P1 might still overload with the -20db pad engaged depending on how loud your source is.
Also, since this topic is spread over 2 threads, I'll answer another issue here: If you decide to use line transformers, you will need to use an external phantom power supply, since the phantom power with the P1 will not work with the line transformers. Also, the line transformers will take a balanced XLR signal and output an unbabalanced signal, so you will need to connect them to the RCA line inputs of the P1.