I too have a Fast Track Pro and a dollarstore dynamic mike with the same observation as above. I've been wondering if a SM57 could be a worthwhile, relatively inexpensive upgrade...
The M-Audio forums discuss this as well. The M-Audio tech replied some stuff about the gain staging of the preamps, blah blah and that you can turn the input quite high without problems.
In essence, since the pre-amp is able to take mic, line, guitar, etc...it is kind of a jack-of-all-trades, master of none.
I'm sure the Omega is quite similar...
My $0.02 (Canadian!)
-Rich