Hey tstein9@yahoo.com,
There a few things you can do to help you with your issue:
1) We recommend you upgrade to the latest version of Scratch Live (2.4.1), which is available via the 'Support & Downloads' tab on the Serato website (see link below).
serato.com (click link)
2) Please also check that your USB 2.0 cord is not faulty, if so you will need to replace it. It may also pay to have a spare cable with you.
3) Please also check that your 'Audio Input' setting is set to 'Phono' and not 'Line'.
Let me know how you go with this.