I managed to solve my problems with squeaks on UltraLite by turning down the hardware acceleration, and I can now record from S/PDIF.
I have another problem now, which is probably fairly simple to solve but I cannot figure it out. If I am passing in a signal from my mixer's S/PDID into Motu S/PDIF how can I hear it at the same time from Motu's main outs? Although I can record what I am putting in on my Sound Forge it does not seem to come out from the main outs. Same thing happens if I am putting a signal into analogue 3-4, can record but cannot immediately hear it
If anyone knows how to set this up please let me know, really appreciate your help.
Thank you.