Loud air hiss and dull repeating popping noise throughout recording

The metronome is on by default, and makes a noise, usually a high hat click sound. Set the tempo to the speed you want, and use the metronome to keep in time to the computer. The tempo is important if you plan on using any MIDI in your projects. You can also turn the met off, or set it to play only when recording.
Tell us about your computer: how fast is it? How much memory does it have? What sound card is installed? What operating system are you using? (MC 2003 isn't made to work with Vista).
Often, sampling rate disparities can produce unwanted noise, as can other programs running in the backgroud, especially virus scans.
Turn off all other programs. Get off the internet, turn off your modem and turn off all virus scans, pop-up blockers and firewalls, including the Windows firewall (Start>Control Panel>Windows Firewall). Turn off the Microsoft system sounds (Start>Control Panel>Sounds and Audio Devices>Sounds). Turn off the screen saver and wallpaper. Read through the Music Creator help file info for "Improving Audio Performance". Make sure MC and your sound card are using the same sampling rate.

Thanks guys for the welcome and I really appreciate the help.
So here is what I am working with:
A Dell Optiplex SX260
Windows XP Pro
Service Pack 2
Pentium 4
2.66 Ghz
512 MB RAM
It looks to me like the sound card is a SoundMAX Integrated Digital Audio
I am trying to figure out how to update the driver for the sound card now.
The microphones that I have tried using are:
1-Shure Prologue 12L; it plugs into the base of the mic with a 3 prong type connector (not sure what it's called) and ends in an 1/4" jack that then plugs into a 1/4" to 1/8" adapter which plugs into the microphone port on the pc.
2-Crown PZM-185. It is connected to the pc in the same way as the one mentioned above.
I am about to work through your other suggestions now 57Gregy and will reply with the results

Thanks again

Two other issues i see, 1. 512 ram is minimal on XP, so you may be experiencing slow recording cauing noise. 2. The sound max is a poor card for recording you really need a external card, also as RB said, the card may be causing noise.

Me personally I would stay with WDM drivers cause MME are going to be too slow with that amount of ram.

TRy this turn off all background services, like virus, firewall, popup stoppers, and try it see if that gives the system enough free resources to run a bit smoother. Secondly disconnect from the internet and see if noise is coming thru there. Also it could be a bad cord or adapter on the mikes, the three prong is for low impedence, the 1/4 inch is high impedence, if the cord does not have a impedence matching transformer it could cause noise.

Great! We're looking forward to hearing your songs.