Chesterkins,
When you click on recordings a window pops up asking what type you would like to make Select Quick Audio. When the Audio recording window pops up you will see two volume indicators on the left side of the screen. Before you start recording do a volume test by playing your song with this window open. Adjust the slider until it is below the distortion level. This should take care of your distortion problem. I prefer to record in MIDI as it adds a lot more flexability. You can fix problems and adjust levels after the recording is made.
Rick D.