I wouldn't jump to the conclusion that it is the soundcard.
Mixaholic, I think you have good ears if you can hear the sound degrading when you add tracks. In my opinion, and this is just an unscientific opinion, DAW tracks can indeed sound worse as the CPU gets eaten up. It may be how well (or poorly) the software is coded, or a sign of a computer that is underpowered for the task at hand.
I've noticed that when plugins get stacked the audio can sound worse. I think it is to a certain extent the nature of the beast with digital audio, even though very few are willing to admit it. It's all numbers, even something as simple as changing volume. So the software, all of it, has to be really well written.
For these reasons I rarely if ever put more than two plugins on a track, and do most of my mixing using analog outboard. I've done *a lot* of listening tests over the years and I do feel I can hear a "processing sound" added to tracks with plugins. It has gotten better as plguins have improved, but I still think that a great deal of care has to be used when mixing digitally in a DAW.