I've got a Digi001 and pro tools, plus a behringer Eurorack mixer... and it's great. Basically, i can record anything i want... drums, guitars, vocals.. etc. And then spend hours on end mixing the fuck out of it.
It's actually a fairly non-expensive venture. The Digi and Pro Tools cost me about $1500au (which is about $750us i think), and the mixer cost me a grand (which is $500us). Plus i already had the computer... so it was a good investment... basically i can record demos for my band, and i fact i could record a full length cd... the only thing stopping me from that is the fact that my house is bad in terms of reverb etc. So all the gear is great.
So just think, instead of buying a new guitar, but a 001 and pro tools, plus a small mixer... and you're set.