Numark DJ/IO problems

Hey guys..

Just got a pair of Peavey pv115D & Passive 115 and a Numark DJ/IO that I am using with Traktor Pro 2.

My problem is when I set the output master to

L 1: Out 1 & R 2: Out

and the Output Monitor to

L 3: Out 3 & R 4: Out 4

I get a very watered down sound that I think is phasing out the signal. Also when I press the headphones button, a mix is sent to the headphones but is still audible through my speakers.

I have my speakers connected to the DJ IO through a XLR to 1/4 cable, into a female 1/4 to RCA adapter into the Output 1 channel. Could this be what is causing the problem?

I have a screen shot as well as a picture of my connections to help supplement what I have written up here..

I am so confused guys so any help is appreciated!!

thanks,

AJ

Cropped screen shot of my audio settings... Attachment 14526

My connections to DJ/IO from Peavey Cabs... Attachment 14527