Vaughan,
> This whole time I've been struggling to get a good flat line with no or little noise. <
I've never run ETF with both channels looped, so I can't say if you should have that noise or not. Most sound cards these days, even cheap ones, have acceptably low noise for music (80+ dB), and you need only 50 dB or so to do a decent room measurement. So here's what I suggest:
Use the microphone to record yourself talking at a normal level from about two feet away. If you don't have a "real" recording program, use the Windows Recorder. Set the record level so the peak reading is between -10 and 0 dB while you speak. Then play it back and listen. If the recording sounds basically clean and has no obvious or excessive hiss, then your sound card is fine.
--Ethan