I'm trying to set up Soundflower and LineIn so that I can play music and talk through Skype. I have iTunes audio playing into Soundflower (2ch) and Soundflower (2ch) playing through my speakers just fine. However, when I plug in my headphones to listen to the music, I just hear a loud annoying buzz. Also, when I set LineIn to take in audio from my internal microphone and pass it into Soundflower I hear a horrible high-pitched noise.
What am I doing wrong? Soundflower (2ch) is my default output, my mic is my default input.