I do always use the combo updates, and in fact tried re-installing 10.4.11 previously with no difference.
I did finally get the fix:
Pro Tools LE 7.1.1cs2 update.
That did the trick. GarageBand & the 002R work great now. The cs2 update addresses several bugs, including the use of the 002R with third party software programs:
From Digi Support:
http://www.digidesign.com/index.cfm?navid=3&langid=100&eid=165&categoryid=36
Fixed: When Using CoreAudio Input To Record With Third Party Applications, Digital Noise Would Result. (Item # 78481)
Note that this problem only occurs with Intel-based Macs.
I still am among the many people who have to toggle the Default Output back & forth in the Audio MIDI Setup, when using Safari & Quicktime Player. This all started after Quicktime 7.2