Re: Rack compressor vs Cool Edit Compression
The compressor in Cool Edit and later Adobe Audition is quite decent. Not the best ever, grade "A", lunatic, insane, etc but for home studio use it's just perfect. I'd suggest using Adobe Audition with some better soundcard, e.g. Soundscape Mixtreme. But if you don't like the idea of getting a $400 soundcard, AFAIN there is a special version of the Soundblaster Audigy card that easily handles 4 tracks. The Audition is a brewtalised version of Cool Edit Pro, with clever updates and improved stability. The mathematical detail of the effects are improved as well, the sound is just better compared to a previous Cool Edirt stuff. Plus, you can insert DirectX plug-ins. Wohever, the best thing with that software is the fact that it was created with simplicity in mind.
Robert S. is absolutely right. When recording, for a good result you'll need some kind of preamplification, compression and limiting to create the most dense signal for your A/D converters without clipping. Over-compression is a bad thing but the fatter the signal, the better the details. So, the DBX is a good tool for pre-compression. Software compressors are usable to do post-compression and processing that you do with the signal AFTER recording.
There are superb software plug-ins but a good analogue stuff can't be beaten. In the studio we recorded the stuff there was a 1-ton '70s mastering limiter, made in Germany with two knobs and a switch. I don't know but it just juiced up the whole sound just the good way.
Considering microphones, there is no "upper limit": if you get your Shure SM57, you'll be devastated once you hear an AKG C414. If you got your 414, a Neumann wipes your a$$ and so on... For a good start of the madness, a Shure SM57 for instrument recording is satisfactory.
Have a nice tweeking!