Record Guitar onto computer?

I have a 1/4in to 1/8in cable i can plug into the mic input on my computer from the direct out on my amp, what program should I use to recored it, i tried audacity but it has terrible quality and you can't hear what your playing because it recored then plays it back a second after. What software should I use? and I have a dell that has and idt hd sound card do I need a better one if im playing out of a line 6 spider 4 with a lot of distortion and bass on my distortion channel?