Recording volume for TT250 USB

Hi there, just trying to record from TT250 USB to my laptop (Windows 7) and having some issues with volume levels in the EZ Converter software.
Have set up speakers and mic as per the troubleshooting guide, but levels still too high - I can set the mic to recording level of 1 and it comes through without distortion when I'm setting up to record, but as soon as I start recording it defaults to 4 and it distorts, even if I drop the gain in the software to -3.0.

Is there another way of controlling the gain/input?
Am I missing something in my setup on my PC?

I'm recording dance records, so are fairly loud and full recordings, but I would have thought the software should be able to handle them.

Thoughts appreciated.
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