I am experiancing this issue too amongst other issues.
Using the "Virus USB" as my sound card in FL 10 with latest update OS and Drivers, works fine for 20 seconds then starts glitching out. Reminds me of the same sound/affect you get when your CPU is clipping with too many VSTs but not the case in mine. I have a near new laptop with a higher end i7 CPU and 4 GB of RAM. Watching the task manager whilst the issue occurs shows no spikes in CPU or RAM.
Tried upping the buffer size. Makes issue worse.
In DAW, changed sound card from Virus USB to ASIO4ALL (Virus Ti), fixed temporarily then issue returns.
In ASIO4ALL, disable Virus and enable onboard - Everything runs fine. Switch back to Virus = PC Locks up completely (not BSOD though - just froze!)
Using my M-Audio Fast Track Pro USB sound card for my DAW and Virus as just a VST/ external synth connected via USB = Setup works perfectly. Switch back to using the virus as my sound card, INSTANT issues....(Yes, I should just stick with using my M-Audio Sound card but why should I when the Virus is "on paper" a better sound card? + I want a simlified setup!)
There is nothing in my Windows event logs either to suggest what could be happening here
Strange!