yeah, i think the settings are correct. got it setup as external mixing, with internal recording on channel c, which is set as inputs 1/2 which the djm goes too.
i can hear the music, but theres distortion over the top of it and the volume ont go up on it with adjusting the gain.
Look at a few things for me. In the PReferences → Recording panel, the little meters next to inputs 1/2 should move when you are playing. What do they look like?
And in the Recording Panel in the browser in Traktor, how do the meters look there?
Do you have a Booth Out volume control of some sort on the mixer?