My guess is that it's overloading the mic input of your sound card.
To get a reasonable drum sound the microphone needs to be reasonably close to the drum kit, but as you must be well aware, drum kits are *&^%@! loud.
One of the down sides of standard sound card microphone inputs (apart from the fact that they are usually very poor quality) is that they don't have any direct way to alter the input gain, all they can do is to adjust the level after it has gone through the microphone pre-amp. Consequently it is often easy to overload the microphone input.
If you listen to the kick drum part, the bass frequencies are a bit low, but it's not distorted and could be made to sound quite reasonable. The big problem is the snare which is massively distorted.
The microphone that you are using is probably not ideal, (though I can't find much information about it on the Internet), but it will probably be OK as long as you are not micing up the drums too close. What you really need is some sort of mic pre-amp that has a proper gain control on the input side. It would also help a lot if you had a second microphone. Do you have a budget to buy some bits and pieces? (it need not be a big budget
