Let me do this one point by point...
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>I think I have Bluestone topped on how amateur these questions are.<HR></BLOCKQUOTE>
You guys are really underestimating yourselves! We once had someone here who asked what a sound card was
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>I need to produce a full-length album on as low a budget as possible.<HR></BLOCKQUOTE>
You looking for a world's record here, or is this based on a bar bet? Seriously, I suspect you
do indeed have a low budget, but I also suspect you don't actually "need" to produce a full-length album. Are you looking to do a demo that will impress A&R dudes at record companies, or a CD to impress your friends, or what? False economy -- saving money in the wrong places -- can stop you from having great sound.
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>I have already a top-line PC, a DirectX soundcard and as far as i can tell, only a standard low-quality mic input port.<HR></BLOCKQUOTE>
Join the club. Mic inputs on sound cards aren't meant for recording with "real mics"! They're meant for attaching cheap mics so that people can have phone sex over the Internet (or something quite similar).
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>I have tried recording in with a preamped guitar into Cakewalk Guitar studio and the speakers play back, but only static. Do I need a new Sound card?<HR></BLOCKQUOTE>
Unless your sound card doesn't work at all, I doubt it. You're doing something wrong in the hookup or playback. Why don't you tell us what kind of preamp you're using and where you're plugging it into on the sound card? When you record, you should see a recording level somewhere. I suspect you haven't read
https://homerecording.com/one_minute_digital.html
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Also, what makes MIDI different from audio recording?<HR></BLOCKQUOTE>
Try
https://homerecording.com/midi.html
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>furthermore, am i just stupid or are there programs out there easier than Cakewalk?<HR></BLOCKQUOTE>
There are many programs different from Cakewalk. I suggest you try demos of all the popular ones and see which user interface you like best. See
https://homerecording.com/digital.html for a list
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>ps. Are there step by step instructions out there for building a digital studio from scratch?<HR></BLOCKQUOTE>
No, but that's not a bad idea...
One last suggestion that you'll probably hear a few times...learn to use the search!!!