The only other plugin I've seen with the same behaviour was also put together in Synthedit and was suffering from a denormal. Putting Digitalfishphones' normalizer in front of it cleared everything up. I tried that with Phonec but couldn't, I think because it doesn't have audio inputs (?).
Actually, being able to proccess external audio with Phonec's ringmod, distortion, filters etc. would be a prettty awesome addition. Sorry to sneak in a feature request.
Something to take a look at after the hollidays perhaps.
Thanks
[edit]
Oops, forgot to mention: WinXP 32 bit SP3, Core2 Duo E4500.
