Great feedback guys!
Can you comment on the advantages/disadvantages of USB vs. Firewire vs. internal audio cards? Here's my setup:
Mostly, live recording of double miced acoustic guitar and vocals. I use RiffWorks for laying down song ideas and for the rhythm section (i.e. bass and drums). I record with Ableton Live and Mackie Tracktion 2 but use Audacity and Reaper for certain things as well (for their simplicity). I'm coming more from a singer/songwriter perspective. Once I have tracks laid down I will overdub some electric guitar and/or synth parts.
Ideally, I'd like to have up to 4 XLR inputs (or, tracks) going at once. I don't have an outboard (hardware) mixer but perhaps I should? The point is that I will have a matched condenser pair on the acoustic and two vocal mics for close micing and ambient micing.
The KB37 issues are too many to mention but if you are truly curious you can read all about it here:
http://line6.com/support/message.jspa?messageID=12873#12873Overall, the unit feels flimsy to me and the noise issues with usb 1.0 are problematic. Is this the case with many other usb-driven audio interfaces? I suspect it is.
Thanks for the input. It's very much appreciated

Rich