Topic: FF 400 to HD 500 interface issue

I am trying to interface a Line 6 HD 500 to my FF 400 and I am having monitoring issues. I connected the S/PDIF out of the HD to the In of the FF 400. The levels in Cubase seem kind of low. But I can record this way. I wanted to record the dry signal this way and be able to "re-amp" during playback using the USB interface on the HD. As soon as I connect the USB I get all kinds of monitoring problems. While playing it sounds like I am hearing two different sources. Is there something I can do in TotalMix to accomplish this? Is anyone else here tracking guitar with this kind of setup? I could sure use some advice on the best way to use this gear.