Don't waste your money on nasty digital multi-effects.
Get yourself a metalzone distortion pedal from ebay (I picked up mine for $80AUD), and run it straight into your computers line in.
Record it into your multi-tracker of choice. I use Acid Pro 4...pretty easy to learn the basics of, but you'd be better off getting something like Cubase SX (it'll be alot better in the long run...i'm attempting to make the change at the moment :P).
Now, the guitar will most likely sound like shit recorded directly in, in which case you need to shape the EQ on the computer after it's been recorded, or you could run it through an amp simulation.
You could lose the pedal all together and go for Native Instruments GuitarRig. Some very nice sounds, but the distortion models leave a bit to be desired...
Microphone wise, unless you're going for a gritty lo-fi kind of vocal sound (which I'm using quite a bit now...I picked up a CB mic and attached a phono plug to it so I could run it through my mixer, kind of like Mike Patton from Fantomas), you'll want to buy something better than a cheap computer dynamic microphone. See if you can find a Shure SM-57 (uni-directional) or SM-58 (omni-directional) microphone. You can find them for less than $100 if you're lucky, and they are industry standard microphones.
To make them sound like high-end tube mics, you could purchase a Behringer Tube Pre-amp...i think they go for $60 or $70...although I could be mistaken.
Also, back onto effects, in the 3rd quarter of 2005, Behringer are releasing a whole range of guitar-pedals based on existing boss pedals (such as the MT-2 Metalzone, DD-3 Digital Delay, FL-1 Flanger etc). These are ultra cheap too (between $40 and $70 brand new), so that might be your answer to guitar effects.
Hope I've helped you out somewhat :)