I recently bought an M-Audio USB Fast Track device to connect my electric guitar to my computer. I also bought FruityLoops, or rather my brother bought it for me for Christmas and I upgraded it to the Producer edition.
Since then I discovered an amazing shareware product called Reaper, which is another Digital Audio Workstation, or so they call themselves. It's extremely cheap, developed by (I think) the guy who wrote or worked on WinAmp and it's feature list is incredible.
This is my first attempt at recording with Reaper:
First Guitar Attempt
Ignore my dreadful attempts at being a guitar virtuoso and forgive the fact I still live in the 80s!
Here's some more: