Okay ... good news! Got it all working. And, even better ... I think I might know what's going on (maybe not).
Hooked the same stuff up today. Presonus Audiobox USB with 2 mic inputs, microphone and phones. Now, this time I did one thing first: I turned the inputs in pulse for the audiobox OFF. Then I launched "pasuspender audacity". Did a few tests and all works fine. Even changed the input from 44100 to 48000 and back a few times, worked fine on either setting (assuming that Audacity sets the interface correctly?).
I think the key is to disable the pulse stuff and that a conflict between the 2 was screwing things up. But, I *thought* that pasuspender was supposed to do that?
Only one more issue is that I can't adjust the gain in audacity for the mic. Seems to be a very low signal ... might have to run it though an amp or mixer anyway, but amplifying it after recording seems to be fine.
Thanks for the suggestions!