winamp output is compressed and distorted
 

The output from Winamp is super compressed/limited and as a result all the tracks I play are really loud and distorted. I obviously made sure that no compressor plugins were enabled and I also tried disabling the internal limiting feature.
I tried different outputs (directsound, HDA, MS primary etc.) and all have the same problem.

WHen I play the exact same mp3's from Windows Media Player there is no problem.

I tried re-installing winamp and deleting all the original config files in order to create a fresh install but this did not fix the problem.

ANy idea what might be wrong?

I am running Windows XP Pro on a AMD Athlon 64X2 dual with an Asus mobo and using the onboard sound.

Try the DirectSound tweaks. Although not necessary close Winamp, Windows and reboot the computer after making the DS tweaks. Some users have found changes don't fully take place until a reboot. If this only seems to happen with MP3 or ACC files...

Winamp > Preferences > Nullsoft Mpeg Audio Decoder > checkmark (or uncheck) 'Fast Layer 3 EQ'.