Just wanted to post this in case anyone has the same problem. When I first ran RACKAFX on my iMac using Parallels, there was quite a bit of static/glitchy audio - buffer underrun. I discovered the "Setup Audio Devices" settings and increasing the latency fixes it. However, there is too much latency this way, the audio is completely laggy once you get the audio playing back correctly.
The tip is to go into "Sound & Camera" settings in Parallels and change "Type" from HD Audio to AC'97. With this I am able to get smooth playback with only minimally raising the latency to Driver Latency: Low, Latency Multiplier: 2 and Audio Buffer Size: 128.
Hope this saves someone some time in getting smooth playback.
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