joebee53,
I too just purchased a GT-40 and am having the same problems as you describe. When I try to record in AIFF with 96/24, specifically when I click 'Record', VS hangs. I get the spinning rainbow disc and have to force quit VS. This happens even when both input and output are set to the GT-40. When I set the AIFF preference to 44/16, it seems to have worked (I have only recently downloaded the demo and started to use it) in that I appear to have files for each side (although I haven't yet figured out what to do with them).
I don't know what you mean about switching from phone to line because my GT-40 has one button (source selection) with phono/line (button in) and USB (button out). Here is my specific configuration: turntable output to GT-40 input; GT-40 output to pre-amp line in. USB output of GT-40 into Mac mini. When I play/record an album, the source button is phone/line (in). When I play a song from iTunes on the mini, the source button is USB (out). I have selected the input and output from the 'sound' control panel to be the GT-40. When I use About this Mac, the GT-40 shows as version 0.01 with 12 Mb/s speed. The hub itself shows as version 1.0 with the same speed. The back of the GT-40 is clearly labeled USB 2.0, so there seems to be some inconsistency here. I am using the USB cable that came with the GT-40. Did you ever hear back from ADL Furutech? Since Paul did not post his stats, I'm as puzzled as you are why his seems to work fine, but ours hangs at this setting. Paul, would you provide us the contact info of your Furutech source?
At any rate, it seems possible both our GT-40s are 'faulty' although it could be an GT-40 hardware/software issue or an incompatibility issue with this software. My GT-40 has other problems as well, which is leading me to think Furutech ADL didn't give as much thought to the GT-40 working with Macs as it should have. For example, when I try play songs through the mini, it often causes iTunes to not function properly as well, and I have to go through a host of reboots and settings changes to get it to work. I will start emailing Furutech as well.
Aaron