For the latency thing, there is a trick to using it in the short term. Just before you record, select "Reset all devices" (I think it's under 'options'). This will re-align your soundcard etc. again, so the effect won't multiply and build up.

In the long term, you need to search for better drivers for your soundcard - ASIO 2 drivers are the ones to look for. Soundblaster are quite good for that kind of thing so you should find some at (from memory...) www.soundblaster.co.uk or www.creative.com.