Distortion problem

[Carsten Wegener <carsten@tyfoo.de>]

I have a distortion problem. When I play my instrument, I set the input 
level, so that the light never turns red or even orange.
If I then record the loop, I can already see during the recording, that 
the feedback is turning red/orange sometimes and so parts of my loop are 
distorted.
I can help this by turning down the feedback level after recording or by 
setting the input level lower and turn up the output.
But I think there must be way to find the right level just with the input 
indicator light without guessing what might come out after recording. 
That´s a very unprecise method.
I read the manual again, but couldn´t find anything helpful. Did I 
overlook something again?
Do you have any suggestions? 

Carsten