You could possibly create a new audio setup. I was having issues with soundflower causing digital artifacts and this helped. Worth a shot if you're still having issues.
Setup soundflower as a midi simultaneously with your regular output. Therefore instead of routing through soundflower for your output (which seems to cause the artifact issue), it routes each as their own output. So far seems to be working on my recording meters without the overdrive static. Here is the how-to on this.
Also, if you are looking for more control I found software from Prosoft that allows for audio adjustment using hear or individual app volume control through hear or soundbunny.
Hope this helps everyone!
~Epoch Dream Productions