Hi Joan, I've not seen the pre-amp you have, but I suspect the the two knobs you refer to are the input/gain knob and output knob.
This is where it can get interesting. You have to set up what is called a gain structure to get the best signal-to-noise ratio out of the whole signal chain. If you'll indulge me for a moment, each device in your signal chain has an optimum input level above the noise floor of the input device. It also has a maximum level at which it will accept these signals. You want your input and output signal to be as high over this noise floor rating as you can get without distorting the signal or clipping, and you output signal to not go over what it is capable of putting out. If you exceed this output limit, distortion and clipping will result.
If you have ever heard the rock guitars of a rock concert, this is exactly the sound you are hearing. For some reason though, it sounds great on an electric guitar. It won't sound so good on your computer.
You start with rolling the gain up to about zero on all of the devices; the pre-amp, and the sound card, and the recording program. (I'm much better at this in analog. You may have different labels and markers on your equipment/software. And someone here may better be able to help you because you are working in digital and I do not. The principle is the same however.)
The idea is, no matter the recording format, to get as much signal through each of the devices as possible without distortion or "clipping". You want the highest gain (or signal) on an input and output as the device will handle before that point. And before it reaches the recording medium...
unless it's tape. But that is a story for another thread.