I don't play quite consistently enough to play with the Trans Siberian Orchestra...but thanks!! LOL.
I use audacity as well...it's a GREAT free program. I've tried some of the other software packages, but I always go back to audacity.
For all the guitar work, I always record the sound that comes through the air from the amplifier, using a condenser microphone and a PA head that can power that mic. From the PA, I go into the computer input. For bass guitar I go straight from the bass into the PA (no amp) and into the computer. If you dont have a PA or a condenser mic, then I guess it's straight into the computer all the time...but thats ok. I find the sound is a bit more "live" the way I do it.
PM me the next time you start a project, I'll be glad to help you out a bit with recording technique depending on what you are putting down!