My audio is finally sounding pretty good, but everything seems to be going a bit off the charts. When I start hitting crashes it gets really bad and starts to look like this:

I thought it would be best to ask here first before I started messing around and figure out what the best way to move forward was.
I'm using one microphone for the kick, one for the snare (which also picks up the hi-hat pretty well), and then two overhead mics that take care of everything else. All of that is going into a crappy little mixer I found laying around (Eurorack UB802) and then being fed out through RCA cables to a single line-in on my PC.
So I guess my question is, where should I start looking to make changes? Should I adjust settings on the hardware side like gain from specific microphones or overall output levels or equalizer settings there? Or should I try and use some kind of compression or equalizer or something in Audacity to adjust the recording once it's already on the PC?
Any advice would be much appreciated. Also, here's a link to the recording that the screenshot above was taken from as well, in case listening to it might give a better idea.
http://www.webfilehost.com/?mode=viewupload&id=8557000
