It took at least a month to find out what was the problem...support at Presonus was...terrible (to put it politely). Can't find nothing on the net, tried this and that, went to music store (where i bought the soundcard) many times to finally threaten the salesman ( politely) that he'll has to take back the soudcard if he was unable to find the problem... So finally to realize that once the record button is engage there is no control over the level.....so it comes down to the soundcard for the level and if the level is at zero and it's still clipping while recording well you have to put something between the instrument (guitar/mic in my case guitar) and the soundcard. After i've found that others had the same problem and solve it by buying a DI box...that worked for me....

I returned this interface, tech support told me if I wanted to turn the levels down all the way to by a DI box.
this would give me better control over hot levels.
 
I laughed and brought it back for a full refund.
 
there is a reason those interfaces are cheap money ;-)