Thanks for the assistance Charvelguy.
The SB Audigy 2 is active, but not the choice for the ASIO driver.
It's just installed with drivers and I've set windows to use the Line6 GP as the preferred device. There are no creative applications installed (the ton of crap Creative would like you to install from the disc), just the XP 32 bit drivers and the creative audio console.
I also check within Riffworks and the GP is the ASIO device being used.
However, I noticed in the RW log file it is showing the GP input latency is 1387 latency = 31 msec. output latency is 2774 latency = 62 msec.
Is it me or is that just really poor? I thought the line 6 stuff was all optimized drivers to avoid higher latency?
The buffer size is set to 1024 with a max of 4096. I do see in the logfile however that both the Creative and GP ASIO drivers are referenced.
I've read some articles about ASIO drivers and most say typical latency is under 10ms. If this is the case, then something is jacked up on my end or the GP is a real piece for any recording. Bummer.

I have the headphones out on the GP go into the line in on the Audigy2 so I can hear everything through my computer speakers. That's the only thing the Audigy 2 is being used for, except for the occasional games.
Thanks again to everyone for the help. I'm really hoping I can get this resolved as RW really looks like a fun, easy and promising program.