Newbie USB interface questions... advice?

On to my next issue...

Well, not really an "issue," but here it goes: I have never, ever used a USB interface before, as I have just been miking my practice amp. It works fine, but two things come to mind.

1. No matter how I set the audio options, I am getting slight latency in live monitoring (using MME settings, as I couldn't seem to get the ASIO working, even after downloading that file). This is okay, as I just turn off the monitoring and listen to my amp outside of my not-so-soundproof headphones. My computer is fairly new and the specs are 64-bit, Windows 7, with 4 GB of RAM and an AMD Athlon™ II X2 Processor. However, I suspect the sound card isn't the greatest. My main question is... does a USB interface actually have a sound card built-in? I mean, are these basically external sound cards?

2. I am nocturnal and I like to record at night, but I live in an apartment, so that is pretty much out once it gets past 10:00 p.m. or so. I tried plugging my guitar directly into my computer via both the mic jack and the input on the back, but, needless to say, it sounded very bad with a lot of distortion and crackling. Would a USB interface eliminate the "noise" of plugging a guitar directly into the input jack? I've actually found some pretty cool free VST plug-in amp simulators (they sound better than my practice amp), so I would be able to record noise-free all night.

3. Finally, what are some recommended USB interfaces?

Thanks.

Right. Research which ones have their own ASIO drivers and are compatible with your OS.
Steer clear of any that read 'plug and play'.
Check which inputs they have versus what you need. More is better.
My Focusrite Saffire has been (almost) trouble-free since I got it, it just loses FireWire connectivity once every few months.
I would recommend the Focusrite Saffire 6 USB. Check it out.
Look up any post by Beagle and click the link to his personal web site. He has a list of decent interfaces there.

This is all very helpful. I would really hate to spend money on something I couldn't use.

I'm a little confused about drivers (I always have been). So, I have to make sure they have their own ASIO drivers? Is that what I have to make sure is compatible with Windows 7 64-bit or is that a separate thing?

Yes, and I just got mine a month or so ago, and the drivers on the CD that comes with it, along with a few other goodies work fine with Windows 7 x64. If I may suggest Sweetwater have 2 yr. Free tech Support for life, 2 yr, warranty, I do not work for them, just very easy to get answers, and they are all nice people who know what they are doing.As far as hardware, if all you want is guitar, or bass, sure, but I would recommend getting a Midi controller somewhere down the line, once you get used to everything, and start playing with synths, or see what they can do, you'll want one! I about forgot, if you dont have good headphones, or monitors, you will lose a little in the long run, when you start to get the sound "just right", good music through crappy speakers or headphones, just sounds crappy, not a must, but if you stick with it long enough, you will lose the LE status, and be hooked like the rest of us.

If the audio interface you choose has it's own pre-amps, you won't need any other hardware.
Most do have pre-amps, but others don't and require some sort of pre-amplification before the signal hits the interface.
I assume you already have the mics, guitars, etc...

Some microphones, usually condenser mics, require an external power supply, so many mixer and audio interface manufacturers include that power source in their devices.
If you're already recording with a mic, you don't need it now, but if you want to upgrade to a more sensitive condenser mic for recording it's a must have.