If i record a mix and then plug it into audacity for some finalization the audacity playback is heavily clipped and distorted. I feel the app is doing this because i once had a perfect recording from DJay2 that was useable in audacity as well. Does auto gain mess things up? Maybe the speakers im playing it through?
Can you play the recording in iTunes?
Then this probably means that Audacity has problems with the format. You can try converting it to another format first using iTunes:
http://support.apple.com/kb/ht1550
Yes, quicktime plays it fine as well.
