Thank you for your replies, let' see:
No they don't seem to be clipping.
I'm on 10.02 (I'm still on a 10.6.8 Mac, can't upgrade and keep the USB working)
CPU level is around 73%
Sorry on uploading the patch, I've never been able to use the Axe Edit on my Mac.
No, no wireless, just a guitar cord and USB ino the computer, headphones out of the AxeFx.
In playing with it, the Dr Z amp has alot of hiss, much more than others.
I played with turning the compressor off, not much difference.
You can pretty much eliminate the hiss with the noise gate threshold up half way, alot of hiss with it turned down.
It seems like it's the noise gate interacting with a noisy amp.
Thanks again and we'll keep messin with it.