Sound distortion in storyboard/timeline

I have seen other users with this problem but no solution
so far. I capture clips in very good audio and video.
When I play them back on mediaplayer, they sound fine. As
soon as I import them into the moviemaker editor, the
sound distorts. A preview of the clip is good, but
dragging it down to the storyboard/timeline distorts the
sound. This distortion remains after compression or
saving. Is it a audio codec problem? This is causing a
lot of frustration. Rollback, re-installing, toggling
with all the settings and bitrates does not improve the
matter. Please help!
Stefan

First let me say that I don't yet have a solution for this one. I've seen the exact same problem posted here many times and I've been waiting with great anticipation for someone to step forward with a solution or suggestion. Nobody has come up with a one yet.

I am sharing in your frustration. I bought a new Canon Powershot A70 and started experimenting with its movie mode. When I imported the AVI clips into MM2, I experienced the same problem as you. I too have tried toggling of settings, re-installation, etc. I have also tried approaching the problem from the codec angle. I've installed numerous AVI codecs (both free and trial ones) to no avail. I've even sent my AVI clip to friends to try on their machines running MM2. They seem to be able to play it no problem! Now I'm looking at the hardware setup. What kind of HW are you running? My machine is a HP Pavillion XT856 (PIII 933). My sound is onboard (Intel 8280AA chipset) as well as my video (Intel 82810E). Is there any similarities with what you're running? Do you want to see if we can work together to solve this one?

I'm sure that there are many people out there monitoring this group for a soltution to this problem. Please reply with what you have tried so far and any progress (if any) that you've made.

Lets get a discussion going.