Hey Black dog..... you should start a new thread for your topic so more people will know it's here.
But, yup... the USB mic is not the tool to use to record in Sonar or MC.
Was it the other way around? You paid for the mic and MC5LE came with the mic?
OK so you are using a limited edition of MC... that LE version is not a full version... more of a teaser.
Many folks starting out (including myself back 5 years ago) are totally over whelmed by the software. It takes time to learn it BUT having the right gear to start will help.
Return the USB mic if you can. Buy a decent dynamic or condenser mic and buy a decent USB based audio/midi interface which runs native ASIO drivers.
By using a USB mic with the laptop sound card for playback, you are in effect running TWO soundcards in the same computer and they are not synced together with timing signals so they will not playback the music you record in sync. Actually the out of sync is happening at the record point. You hear music and are singing/playing along with it, and it sounds like it's in sync but the new stuff going in on the USB mic is not being synced properly and when it's played back..... total confusion.
Audacity is not like Cakewalk so saying it works fine with Audacity is one thing, but a USB mic will not work well in Cake. A USB mic is ok for podcasting and that's about it. It is certainly not designed for multitrack recording. And yeah, I know they bundle it with cake products and tell you that it is..... Like Beagle, I wish they would cease and desist that practice... but I guess it opens the doors to some people actually doing the right things and getting into recording the right way by getting a good interface and buying up the cakewalk ladder.
WinXP is a good OS for MC. Lose the USB mic, get a decent interface, and the DAW will be a much better performer.