It looks like we're on the right path.
Next thing to do would be to run a full anti-virus and anti-malware scan (an "in-depth" scan that takes ages to complete).
Have you tried going into the Task Manager and shutting down all non-essential programs and processes?
(It's safest to go off-line before shutting down your anti-virus program).
Clipping/distorted recording
Forum rules
Audacity 1.3.x is now obsolete. Please use the current Audacity 2.1.x version.
The final version of Audacity for Windows 98/ME is the legacy 2.0.0 version.
Audacity 1.3.x is now obsolete. Please use the current Audacity 2.1.x version.
The final version of Audacity for Windows 98/ME is the legacy 2.0.0 version.
Re: Clipping/distorted recording
9/10 questions are answered in the FREQUENTLY ASKED QUESTIONS (FAQ)