hi..i tried doing the same thing as u did, u noe, plug in the guitar direct to the mic slot, and i did experience the delay as u did.
well, been looking around for ways to solve, but din really find anyhting, UNTIL, i went to sinamex. there's this multimix8USB, a mixer that's wired directly into your pc, for real time recording. note:almost NO delay.
the cubase is also foc, and..i dunno...u shd try to come down there and ask ard...i'm aiming to buy it at e end of nxt mth...(if my GAS doesn't surface...or else..its gone...)
retails abt $325 i think?