i have the riff tracker, it is a cool tool .
It only sounds as good as the speakers your using, i have some nicer computer speakers but they are a big factor in how you sound. As for the recording software that is included with the riff tracker, it is limited very limited, all you can really do is record, there isn't any editing ablities at all. So you have to do 1 of 2 things. Do the song in one take or peice by peice and then peice it bacl together in a different program.
One good thing though, you can use outside programs to record the guitar port with. You dont have to use the riff tracker software.
So my advice is get the guitar port, and simple recording program. I got magix and it is sort of hard to use, it has way tooo many options, and exter crap, i like to try to keep things easy and simple.
Again you may invest in some high quality headphones or cheaper passive studio monitors. Even if you do have to buy a few exter things, using the GP to record is still one of your cheaper high quality options.
I would be more than happy to send you some clips that i have done using the riff tracker software and guitar port. just PM me with your e-mail.