I'm really sorry to hear about your M-Audio horror! Thankfully nothing so dramatic has happened to my system, but something pretty extra ordinary has happened! I actually did install new drivers downloaded from M-Audio's sight, and a very tedious experience it was too. But it did not cure my problems as I was still experiencing severe latency in Cubase SE. However much I tweaked the settings and took advice from people on forums, no success.
Then, last weekend, it just started working properly! No kidding, I didn't alter anything, I just plugged my guitar in just on the off chance, and low and behold, the damn thing is working perfectly!
I'm recording as often as I possibly can just in case it suddenly goes crazy again!