There is always going to be some latency in computer recording. There are some things you can do to reduce it, but in the end you may still not be able to a have a latency low enough that you like or can live with. I guess I'd start by calling or emailing Digi support.

From a post from another forum

Originally posted by Digger:
Ok, so let's say I only record 2 trks at a time - 3 at the very most for now. Let's say I put a large chunk of dough into a real high end 2 channel pre and use that for tracking and mixing in the box. How high of quality should my mixer be then if I'm planning on using primarily to achieve 0 latency monitoring?
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Man, no problem. Ask away.

Ok, here's what I would do. :

2. On your computer, you will have two choices: direct monitoring or latent monitoring.

Direct monitoring takes the input and INSTANTLY duplicates it to the output assocaited with that input channel. The big drawback here is you need an external mixer to then blend the recorded music with the overdubbed part for a CUE MIX ONLY. (read: use a cheap piece of crap mixer here and save your $$$ for stuff that matters!) You also need the same number of inputs and outputs, and it needs to be more than 2. The big + is latency becomes a non-issue, which was more of a big deal back when processor speeds were topping out at 1.2Ghz. It's becomming much less of a consideration with how fast modern processors are at reasonable price points.

Latent monitoring routes audio through the computer during tracking. You have the delay of computer processing, but you use the computer's mixer for cue mixes, eliminating the need for an external mixer entirely. This is the route I have taken now that my computer is a 2.66 Ghz with fast front side bus and plenty of RAM, and I often do 16-tracks! Today's computers are so fast that you can easily set the latency down to about 3ms (0.003 seconds) for audio to make the round-trip. Basically imperceptable by humans as far as "playing along" is concerned.

If you are only doing a couple of tracks at a time, $1000 spent at Dell.com is going to buy you plenty of machine, including the monitor, to do that and more. Dell's are also kind of nice because of how easy they make it to root around inside the case and add cards, etc. Macs have traditionally also been well regarded for this.

I am also having a latency problem. I am quite new to the whole recording scene, and have just set up a basic home studio. My computer (2Ghz cpu + 1GB RAM) is set up with cubase SX, but only uses a conventional sound card (sound blaster live). I also have a behringer MX2004A mixing desk which i have hooked up to the sound card.

When i record in cubase, it the signal comes through almost 1.5seconds after i send it, which really throws me off. at the moment i'm outputting the signal from the desk into headphones to bypass the problem, but i was hoping there was another way, as i'm using effects from the ''Amplitube" plugin.

Is there anything in the ASIO setup to adjust this, or will i just have to go out and buy an soundcard (not possible with my current budget)

any help here wouyld be great.

I would recomend bying an other soundcard anyway... but you can try this:
http://michael.tippach.bei.t-online.de/asio4all/index.html