Hi chilifreak,
Your message has been up quite a long time now (in internet forum terms, anyway) and no one has answered, although everyone reading it (almost without exception) will know the answer.
Here are 2 reasons why:
- your problem is in no way specific to Audacity
- you're starting from such a low base that it's hard to know quite what to recommend
OK. This will solve your immediate problem...
http://www.tweakheadz.com/guitarists_gu ... ording.htm
but you really need to find a good basic guide to setting up a Home studio or you are going to run into this type of problem every 10 minutes.
Dig out and read the manual to your PC & soundcard so that you understand what all the different connections and components do.
You will find that the time spent turns out to be well worth it.
Finally, I would make the obvious point that the fact you can physically connect 2 pieces of equipment together does not make them compatible.
Good luck!