[ProtegeManiac]

I have had foobar for quite a while, I enabled wasapi and still get the distortion at full volume(foobar volume-100%, usb out- no volume control). The amp volume is set at about 11 o'clock.

"So you think that the external dac is working properly then?" I meant, if the volume analyzer graph if displaying outputs, that does not necessarily mean the internal soundcard is running, correct?

 
The soundcard's DAC isn't but its DSP for example will be as that is what converts it to an SPDIF signal. Similarly,if it's the sound section of a mobo plus a USB DAC, software DSP can also continue running.
 
How about the HP201 drivers though? My HP101 works with Android but on Windows 7 it needs the specific drivers from Pangea's website.

 

[JBal4]

Yup I did install the drivers when I got the amp.

 

[ProtegeManiac]

Yup I did install the drivers when I got the amp.

 
Do you have any other source to try via USB just to isolate whether the laptop might be the problem? See if your smartphone works via USB-OTG (Android; note it might be the phone that doesn't work though) or Lightning to USB (iPhone).