Cubase 5 static and popping issue

I have installed Cubase 5 on my laptop and i use a line 6 podxt interface, i got it to record, but there is extreme static and popping sounds. I tried changing the buffering settings in devices, it does nothing. I changed the settings on Windows control panel and it got rid of the static and popping! BUT now i cant hear any of my vst instruments like ez drummer etc…

What the hell is going on?!