Ok, there's a couple of concepts you need to grasp here;
Signal chain: this is the chain of circuits that the signal passes through on it's way to being recorded.
Gain stageing: This is how much gain is applied at each stage of the signal chain to work within the linear slope of each circuit.
Your signal chain, depending on how you wired things up, may include the following;
Mic - Mic preamp - EQ - Summing amp - soundcard preamp - soundcard A/D converter.
The best situation is to eliminate all but the mic, pre-amp, and A/D converter.
With a mixer this means going into the mic input on a channel, and then using a direct out from that channel. If the mixer doesn't have direct outs, then you can usually use the first click of a channel insert.
Now on the soundcard, make sure you're not going into a mic input. It must be a line level input.
Gain stageing involves understanding the signal chain, and making each stage do the work it's intended to. Your distortion could be occuring in the preamp, or it could be downstream. If you're going onto the buss, it could be that you're overdriving the summing amp, or perhaps an EQ stage. Or you could be hitting the A/D too hard on the soundcard. You'll need to think this through, understand what your signal chain is, and then find out which stage is either getting hit too hard, or is working too hard.
Good luck,
RD