I perform regularly in a virtual world called Second Life, and this is my setup.
Guitar -> VoiceLive 2 -> Digitec RP500 -> Alesis Mixer - MAudio 2496
The purpose of the guitar signal going to the VoiceLice2 is the permit the analysis of the key that is playes, so the generated harmonies coum out in tune.
The output of the MAudio sound card is streamed to the internet by a broadcaster program (I use SAM, from Special Audio). I stream at 128 kb/s, at a resolution of 44.1Khz. Needless to say, the quality is pretty good.
I also do recording using Sonar Producer X1 from Cakewalk.
Let me know what you use...