Recording with Audacity using Soundflower causes echo/reverb

I had same problem just fixed it, so assuming you are trying to record audio from Sound Card. The echo reverb is cause by the microphone in your comp, go SoundFlowerBed-->Audio Setup--> Then right click SoundflowerChannel(The one you've setup)---> Set as "Use device for sound input". And that way the microphone its trying to listen to doesnt exist in that channel.