I use a Line6 Toneport UX1 with either Cubase or Cool Edit Pro and it works great. Except if you have a 64-bit version of Windows. lol (driver issues). It didn't work so great on my new laptop, so I keep my old desktop PC around for kicks.
The Toneport comes with Pod Farm software, which has quite a few modeled pedals. It actually sounds pretty good and I don't have to drag out my pedalboard if I want some effects on my sound. One GLARING oversight is that it doesn't have a good envelope filter.
On my laptop, I use a Cakewalk UA-25EX USB interface and go into Cubase. Works pretty slick, but I do miss the Podfarm software.
EDIT: The Cakewalk is a more expensive option, though. I picked up the Toneport for $99 and I can record anything that I can plug in with an XLR or 1/4" cable... drum machine, keyboard, bass... I even mic'd up a set of wind chimes once.
EDIT AGAIN: and yeah... you can run effects on anything you record with the Toneport. Imagine the fun of the windchimes with fuzz & delay. lol
5sg.