Mic Playback Distorted

That is some crunchy noise.  I wouldn't want that, either.

Steve mentioned the first thing to check in Audition, buffer size.  Since a higher value there didn't help, the next thing I would check would be the sample rate settings within Audition and the device drivers.  If you're using an ASIO driver for this interface, it simplifies things a bit.  I would suggest:

• Opening the native audio driver software for the Arrow and ensuring the Sample Rate is set to 48,000 Hz.
• Open Audition Preferences > Audio Hardware and make sure the sample rate is set to 48,000 Hz there (and that the Driver Model is ASIO)
• Create a new waveform document and ensure it's also at 48,000 Hz.  (The goal is to make sure nothing is attempting to do any sample rate conversion and we're getting a straight feed.)

If you still hear noise, let's rule out a few possibilities:

• If you can, temporarily swap out the microphone AND the cable to make sure there's not an issue with either of those components.
• If the Arrow interface has a monitoring output, do you hear the noise there?  If not, then it's internal signal path is likely fine and the problem exists between the data streaming out and the capture.
• If you record to a different hard drive, is the noise still present?  

Edit>Preferences>Audio Hardware - increase the buffer/latency value until this stops.