Logic Express-oxygen8 Latency Issue, Go slow I'm new! Options

[SiGi]

Problem:
If I start a new project and set up an Audio Instrument - say the EXSP24 Grand Piano - I can play using the Oxygen8 and there is no latency as I am playing. However once I record the melody, when it it plays back, I am missing about every 3rd note, it sounds awful!

Also if I open the Tutorial and try to play the ES1 that's set-up there the Oxygen8 does not register any IN or OUT signals in the Transport window

Tried:
Audio Midi Set-up changing from Using Built in Audio to using the ULN2 but makes no difference

Gear:
Powerbook G4 1.5 Ghz 1.5gb Ram OSX 10.4.8
Logic Express 7.2.0
Midiman Oxygen8 (latest 3.2.2drivers) -Connected to Powerbook via USB
Metric Halo I/O ULN2 Mio Console 2.2f15 - Connected to Powerbook via FW

Many thanks for any suggestions