It sounds to me like the guitar doesn't sound that great to begin with, and it was recorded with a dynamic mic and a cheap soundcard. I mean, there's a lot of hiss in this, so when you apply an EQ boost to brighten the top end a bit, the hiss really gets accentuated. I made some really deep EQ cuts centered at 315Hz and 125Hz, and I boosted it a bit in the "hiss/sparkle" region (@ 12K).
Now it just sounds like a heavily EQ'd version of a crappy guitar track, lol.
Anyway, if you're interested, here's the clip, but I cannot overstress how important it is to get it recorded better to begin with. Even with a cheap guitar and a cheap soundcard, you can get a much better sound than this if you take the time to listen very carefully when you're tracking the guitar. Move the mic around a LOT and listen in the headphones until you get the best possible sound you can out of the guitar...you'll still have to EQ it, but maybe it'll be less extreme. Also, if I were you, I'd try some very close mic'ing around the 12th fret...see how it sounds.
Good luck....keep recording.
[edit] I also used some hiss reduction on it, which I haven't used in a LONG time, but the hiss on this was pretty severe when I boosted the top end.