FCP 5 and Kona LH Audio Problem

I've just upgraded my system from CineWave to Kona LH and I'm having some issues with audio... The G5 is setup to use Kona for all audio. Initially, after installation, Every sound played through the Mac had a 1 second echo of the sound. There seemed to be some buzzing with this. In Final Cut... whenever you stopped the sequence, the audio continued (echoed?) for one second after, again with the popping. I spoke to AJA, and they said there may be an issue with "cache playback" or something like that, but didn't offer a solution. They also suggested I speak with Apple, and mentioned that I might need a firmware upgrade. Dissapointing...

I now have a new problem... no audio at all from the desktop or Final Cut, except when I attempt to capture. I can hear the audio from the source, but there is no indication that FCP sees it. Preview (FCP 5) shows no levels. When source is captured, there is no audio.

Is there something in the initial setup that I am missing? Since this is an issue that initially was present on the desktop as well as FCP, I am assuming it to be a Kona problem. Is there something in FCP that is set wrong? I'm open to any suggestions...

Looking on their support page the PDF says:

" It is not recommended to use your Kona for your system audio output. Choose ?AJA Kona? as the output device, then set the ?Output Volume slider to 67% for Unity gain"