Latency has nothing to do with SMPTE. SMPTE Time Code allows a "sync" point for video and audio.
Latency is the amount of time it takes the audio to:
input - convert to digital - travel through USB/Firewire port - into operating system (Windows) - into software - process - back out of software - through operating system - out port - back to analog - to your ears.
As you can see, this is quite the path the signal has to travel. The only way to remove latency using lower-end Firewire/USB gear is to have direct monitoring. Basically, this wires your input directly to your ouput on your interface. Meaning your XLR input is wired to your Speaker/Headphone out. This way, the signal doesn't travel all the way down the line, but simply analog to your ears. It is found on most USB/Firewire interfaces as an option. Of course, you have to mute the track you are recording to in your software to not hear the computer playing back what you are recording.
Using ASIO drivers in Windows can also help reduce the latency, but it will still be noticable to you. I tested this one using an M-Audio Mobile-Pre box. Using WDM dirvers, the round trip signal time was 302ms. Using the ASIO drivers it was down to 40ms, which is still audible to the human year (generally anything around 10ms or 15ms is). Apple CoreAudio is a bit better because of the way Apple implemented this into the OS, by not having to travel through the OS layer, but you will still hear the "delay" effect.
Firewire can also help with this situation.
I know in Pro Tools if you decrease the Hardware Playback Buffer, you can decrease the amount of latnecy occuring. Generally the rule is:
Tracking (no plug-ins) - Lowest Buffer Possible
Mixing (Plug-ins, processor intense) - Largest Buffer Possible
What kind of interface are you using?
Hope this helps a bit!