Well basically. All I hear from my speaker/headset. My friends can aswell. Doesn't matter if I turn off my speaker. THey still hear it. What's going on?

It's kinda hard to explain. The only way I can stop the echo is muting all kind of recording.

It sounds like you have the "monitor" button engaged on the tracks you are recording on - You need to disengage the monitor button - usually looks like a speaker cone in the section where record enable, mute etc are.