My computer should have sufficient processing power, I'm also using an Presonus Audiobox USB 2x2, maybe its the soundcard?

I need an upgrade soon, anyway. Probably going to get that $500 M-Audio box. 

Latency?
The lower - the less lag, but more cpu usage (use when tracking/recording)
The Higher - the more lag, but less cpu usage (use when mixing)

Try freezing any tracks that are in playback, while you record another.

Thanks for the tips, I'll adjust the following later when I'm ****in' around with it. 

If you're at the mixing stage, lag (latency) doesn't matter.

If you're still tracking, try bypassing all of your Fx plugs.

There could be other factors at work:

What are your driver settings?

Running everything off of one HDD can easily cause this.

How many audio tracks/soft synths are in your project?
Is it just this one project or all of them?