Alright my band is recording our first demo. The fancy $100,000,000 recording studio? My family room. We're 14 years old and have no money to spare.

We're an alternative rock three-peice. Our music sounds like Zeppelin meets Nirvana.

We have two USB-mics and basic Windows Sound Recorder.

How can we get the most professional sound from it? Should the quality sound like crap (just like the kind of music)? How many songs should we put on it? What kind of songs? Straight up rocker songs or soft songs? We have both.

I was thinking...

1. "Love Baby" A riff-driven heavy song. Sounds a tad similar to Audiolslave's "Cochise" but with more of a Hendrix riff. Our favorite intro to a song. When we play it live we'll add a bit of very calm wankery to the intro. Have feedbacking guitars, blow into the pick-ups, etc.

2. "Queen Diva" A song almost completey (with the exception of chorus and solo) dominated by bass and drums. No guitar in the verse, and the vocals are calm almost talking.

3. "Post-08" A soft song. Sounds very similar to Bush's "Glycerine". It's a favorite of mine to play, but not to perform.

The point of the demo is get a bit of publicity. What do you think would leave the best mark. Also what helps in getting stores to sell it? Any tips for a first timer?
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First, I would say Windows Sound Recorder is atrocious. Pirate yourself some decent audio recording software. Second, what kind of USB-mics do you have? If it's a voice mic for webcams worth $20, you'll need something better.

Also, 2 to 5 songs is pretty normal for a demo.
The song selection seems good enough but I'd definitely use something other than Sound Recorder. Just grab yourself a copy of Audacity. It's probably the best completely free recording program out there. As for the USB mics, I'd see if you could borrow someone's normal mics because you won't get much out of them most likely. Back to the songs, put songs on it that best reflect the music you play. If you play a lot of fast rock songs, put those on there. If you play a lot of softer stuff, you'd put that on there. This is how you show people what you plan on doing with your music in the future. Good luck with it!