It sounds like normal noise from the recorder to me. I had an H2 for a while and it's a decent recorder but for $200 you're not going to get a top of the line piece of equipment. When using the internal mics you will get some noise when you turn the gain up. It's just due to the unit having a budget preamp. Like Chris said, if you want to get rid of noise buy a better external preamp and mics.