Extrremely strange guitar problem...

This only started happening recently on Cubase when I record guitar from my amp direct (I know, but I'm getting a DI soon).

It starts out fine for the first few seconds, then it goes underwater.
Is it a problem with my sound card, or the cable?

https://files.getdropbox.com/u/1427835/Problem.wav

Cheers.

What sound card are you using? What O/S? Does this happen right around the same time, every time? It sounds like out dated drivers or a conflict with other programs, may be running in the background. Are your drivers up to date? If so, any other audio programs running in the background?

One more thing, since you are recording direct guitar, your latency settings might be too low which can cause this problem as well.
 
Yeah, this totally sounds like a latency issue, probably caused by background tasks. If you can't dedicate the machine solely to recording, fresh boot ALWAYS before recording and make sure you clear out EVERYTHING but Cubase and the OS basically. All that weird bitrate and downsampling is your RAM freaking out and spitting back only some of the converted audio through your soundcard.