The Peavey Bandit amp should be pretty much bullet proof. You'll probably find that its tough to get a "creamy" lead tone out of it. Maybe look at investing in a decent overdrive or distortion pedal, or even a multi-effects pedal like the Zoom G5.
Technology has come a long way in recent years... something I think a lot of people miss out on is having a unit that allows you to play backing tracks and your guitar with effects at the same time. This can be done a couple of ways... you can get an all-in-one unit, like the BOSS JS10 that will allow you to load & play MP3 and .wav files, and play along with your guitar using the on-board effects, or you can get a unit that will allow you plug in an MP3 player or your computer, and has effects built in, like Korg's Pandora (an effects unit with line input) or Line 6 JAM (amp with line input).
Playing along with backing tracks is fun and a great practice tool!