When I record from my sp to my computer using software, I have to turn the volume way down on my sp so the peak meter on the software wont clip....anyone know a solution?

I dont own a 404 but i accidently saw your post!Are you recording to the computer thru line in-out staff?(also do you use the onboard soundcard?)

If so ,on XP(maybe Vista aswell)the line-in "fader" is way up...
doubleclick on the audio icon in the taskbar find properties for recording and then choose line in(I hope you didnot rec thru mic!)...
makesure that the line-in fader is down as it can be and then push the "up arrow" 2 to 4 times so sound is heard...

Maybe its something else but dude:
Give some MORE info...!

PS. Sorry for my bad English....!

^^what he said^^