Hi,
I know it's not the topic here, but anyway... My line out (XV-88, outputs 1&2 or A&B, don't know for sure) even gives way too much power while recording in Cakewalk. I have to turn the volume quite low before all the clipping is gone. And doesn't the headphone jack give a little distortion of your signal?
About SpellcasterVicky's problem: do what Dr. O says. First record everything in MIDI and then record what comes from your line out (or phones jack :-)) on an audio track while simultaneously playing the MIDI sequence...