It could be that the hardware is defective or it could be that you have a very poor signal to noise ratio which is introducing too much background and/or preamp noise when you record.
If it only happens with the Audiobox USB and not with any other audio hardware you own, assuming you have other audio hardware, it may be a defective unit. If you believe that to be the case, you may want to take it back to Guitar City and have one of the sales people there try doing the same thing there to see if they can get a different result.
If it is defective, ask them to replace it. If they can record with it without that issue it's more likely a gain staging or setup issue on your end.
