drabbag - here's one that might save you a bit of time. In order to be able to record over a track that is playing in the background, go to Edit | Preferences and in the Audio I/O tab, check the box 'Play other tracks while recording new one'. Took me a little while to discover that.
Also, I connect a Line6 PodXT to the putr via USB, and then choose it as a 'soundcard' in Audacity - that way I can plug my guitar into the Pod instead of into the putr. Saves me having to find out the hard way what that direct connection might do to the computer :-)
Cheers
JT
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