There are some distortion effects in the Cubase but IMO they're worth a ****. I have Zoom 505 myself that I use to record direct with the Cubase. I agree that the sounds are horrible BUT It's better to use the Zoom alone than to use it with an amp. I can get decent sounds by using the Cubase's EQ and the Zoom. I'd still recommend to go with the Line6 guitarport though...
Thanks
Jani