I tried the usual output straight to computer method but the sound gets distorted on a "clean" setting, before I recorded through my Amp but it sounded crap through that so now I'm at a loss on what to do...any help?
how about the midi output? does that make any difference? the recording interfaces look very expensive so I'm trying to avoid it heh
You are just doing something wrong. The clip Fun DeLay in my profile was recorded with a Korg AX3G straight into a computer with a cheap onboard sound interface. Are you using mic or line in. Mic is more sensitive and easier to overdrive into clipping. There is a selection in the advanced recording option of the volume control panel that you can turn off the 20DB boost on the mic. You should use Audacity and look at the waveform to see if it's clipping. Note that some sound cards clip at half the normal level in stereo.

Turn down the output of the Korg and turn up the recording level to get a reasonable volume. With Audacity you can zoom in the waveform and see if the wave is clipped.