Although my guitar parts are in time etc, when Im recording verse then chorus then verse etc it sounds a little harsh - as if its all been hashed together. Anyone got any tips on how I reduce this so it sounds more seamless and smooth?

I thought perhaps a little bit of fading in might reduce this, although it's not preferable - how do you fade in and out?
I haven't worked specifically with Ableton, but with the majority of DAWs, it's taking the upper left/right corner of the track, and dragging it right/left so that a little linear fade is brought in. Sony Acid has a default Quick Fade feature that adds them at the end of music sections...perhaps you can find Ableton's, which is hinted at here.