If ya want some decent advice, keep an eye out on eBay for a GT-8.
I got mine for $400 in perfect A-1 condition. I don't even think the guy ever used it.
If you're into recording, go direct and use Amplitube to sweeten the sound.
Also, on a GT-8 a Redbox Cabinetulator tends to smooth out the harsh 'fuzz' sound from the overdrives.

If you really want to get audiophile quality, use a pair of decent headphones like the Akai K240 or even better the K701's. Then grab one of the custom made headphone amps off eBay by a guy called hotaudio40.
They're battery operated by 2 9 volt batteries so you don't get any 60hz power hum and I can't say enough about how amazing sounding they are.
They can also be used as a preamp.

And that's basically it... I have a full studio I record in, but for the most part, I use a Gibson L6S Deluxe using high end cables, into the GT-8, into a Behringer mixer. Straight out to the computer (a Mac of course).
Then I use Amplitube to sweeten any overdrive sounds and a bunch of VST synths like Absynth, Pro-52 etc.... and Cubase.

Like, you can do most of your guitar recording inside in about 30 minutes then go outside by the pool with a laptop and spend all afternoon editing.

Every song I posted on Soundclick:

http://www.soundclick.com/schmange

... was done on a 10 year old computer and then edited on a cheap laptop lazing around by the pool... it's easy as hell ....