For some reason all of the distortion type effects sound well...distorted. I dont know if it is because of my monitors (m-audio bx5a's) or thats just how it is. The regular distortions/tube screamer are ok but the fuzz's sound horrible! They sound like my monitors are going to blow up.

is it my monitors or is that just how it is?
Well I'm using the amps in guitar rig too. If that's what you are getting at. Or do you mean the effects are selected than out put into an actual amp?
no, your opening post was unclear, it didn't tell that you used the amps.

I, as a user who purchased guitar rig, don't really like the tone of it. it's not up to todays high standrads set by FREE amp simulators (www.acmebargig.com).
I figured it was assumed :/

Yeah, the gearbox software/pod farm from line 6 (atleast effects wise) sounded a lot better imho