Problem with M-Audio Fast Track USB

Okay so here's my setup. I just recently got a new HP laptop with Windows Vista (which I'm regretting now) for college. I use Cakewalk Sonar 6 as my sequencer and a Roland RS-5 synthesizer keyboard. Normally, I compose songs using MIDI and when I'm ready I convert those tracks into audio tracks so I can export as an mp3. To do so, I run a cable from the headphone jack of my keyboard to the mic input in my computer.

This method wasn't working on my laptop soundcard because well..it sucks. So I purchased the M-Audio Fast Track USB and now I'm a step closer. i can actually record audio..but I'm having issues.

First: The sound is very bad..I guess distorted is the right word. Everything sounds kinda washed out. Also, certain sounds (like a drum roll I have for instance) are very low and sound odd.

Second: I seem to only be able to record in mono. Only the bottom half of the audio track gets any data written to it.

Anyone have any idea whats goin on and if I can make the sound quality better? Thanks a lot for any suggestions..much appreciated.

Jam it back in, in the dark.