Hi Gar,
yep, this has been brought up a few times but no need to appologise.
If you have the money you should get yourself a condenser microphone. You can get ones specially for pc's, cost about £90 and upwards. Might get one cheaper but I dont know.
Another good thing to have ( even though you have audacity) is guitar pro 3 ( calkwalk) it is a 32 trck recording studio.
It will take you time getting the right levels and positions for placing the microphone, but once you get that sound, you are set up. Write all things down that you do for recording so you can go back to look up notes on certain sounds etc.
You can plug your guitar straight into your computer's soundcard for recording, or thru an effects proccessor first. My mate does this and he gets some good songs, pity he cant sing though <img src="images/smiley_icons/icon_lol.gif" border=0 alt="Laughing"> but he gets by!!
it can be very frustrating at times but dont give up.
Ken
ye get some that are cut out for the job and others just get by from pretending