fib89: I have the same question. On Windows XP the sound is oversteering a bit. On Windows 7 it's ok.
The sound settings in POD are very interesting and, unfortunately, a bit buggy. There is a plus and a minus button near the sound settings, right? To stop the music without stopping all the sound, you have to click on the minus and hold it down until the value reaches zero.
If you click on the value box and try to enter zero for the music, it will turn off all the sound.
At least this is how I do it. There could be a smarter way. :)
About the oversteering - I've noticed this bug as well on some machines, maybe there is an incompatibility between POD and your sound card? Do you have the right sound driver?