Alright I need two things:

1. An easy to use recording system I can use for my guitar. Oh and I'm a musician so I need something inexpensive (under $100).

2. That "wobbly" tone from the Nirvana songs like Rape Me and the intro for Smells like Teen Spirit.

Any help would be much appreciated.
well you can probably use some type of tremolo pedal for #2 but to use your computer as an amp and FX unit you will need to buy an interface along with some software.

an interface will take out the latency (delay from what you hit a string to when you hear the audio on your computer) and it will also let you plug your guitar into the computer with its on board 1/4" connection and preamp.

software alone is never enough...haha

As for the amp and modeling software, try Amplitube
Also look at ReValver MKIII there's a free demo on their site.
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