Yup it is a latency issue, most on board soud cards are awful for recording. They don't handle full duplexing well at all. You can either grab an inexpensive PCI card that supports AISO drivers or go with an external usb or firewire setup. These ar designed to give you no latency and are fully duplexing.
I run an EMU0404 PCI and love it. I think these are discontinued now for the PCIe version though. You also have to keep in mind alot of the new interfaces expect you can hook your speakers via RCA, or on a card like mine need to be done through 1/4 inch via some adaptors. I also have to have a preamp for my inputs. Some of the USB stuff has the preamp built in, but be careful how you connect the speakers or monitors, you may have to buy some cable and adaptors.
I have my outputs going from 1/4 inch to RCA then into my Stereo reciever and it acts like powered monitors.
Geeve