I have used previous versions of Music Creator, but haven't had this problem of latency. I can often remedy it with "nudging" (I don't remembering having to nudge in earlier versions) and if I nudge, lets say a drum track, later in the song track it is not in time. I'm using XP Pro, core 2 duo, max ram for a 32 bit machine (3GB...uses about 2.5). Am I just underpowered? If I had a higher end machine would this alleviate may latency problems??

Welcome Prufrock.

There is no problem with the computer being under powered.... that is rare. 

This latency is likely due to the sound card and driver mode you are using. 

Tell us about the sound card you are using, and the driver mode you have MC set to use. 

The "later in the song track it is not in time" suggests that your sampling rates and bit depths do not match for MC and your sound card.

I'm using M-Audio Fast Track. Driver mode WDM/KS

switch to ASIO if it is a supported driver with the M-Audio....as I think  it is. 

use 44.1 khz at 24 bits to record. 

+1 to Greg's suggestion.  Sounds like a clock issue and not latency.
 
Glen