Current setup:

Peavey ValveKing 212
Paul Reed Smith Singlecut SE
Line 6 Uber Metal distortion
Line 6 Echo Park delay

Recording equip.:
Sennheiser 609 Mic
PreSonus Firebox Firewire Recording Interface

Anyhoo, my question is this: I'm trying to get the best sound out of my setup as I can, but I just can't seem to find it. When I'm recording, my guitar gets either too loud or too soft, and it always becomes very undistinguishable when I'm playing power chords or just harder music.

What kind of settings do you recommend for my amp/pedals, and what do you guys recommend for the actual physical process of recording? More specifically, where should I be placing the mic?
For distortion, use generally 1/2-3/4 of what you would normally use. It always comes out sounding heavier under a mic.
And play around with the mic. There is always a "sweet spot" on every mic/amp, but you have to play around to find it. Try closer or farther from the speaker, on a different pitch or angle, from a different side... just make sure to write down what you have when you're happy with the sound.