Cakewalk looks brilliant ... there are cool Steinberg softwares ...
I use MixCraft5
http://www.youtube.com/watch?v=e0skprOT4UEIt has drums (which i am exploring but not yet) ...
http://www.youtube.com/watch?v=uYAcOYHzzU8and full midi connectivity. You would need a computer
interface though, there are many. I use M-Audio USB FastTrack (mark 1, practically obsolete but cool for my humble needs). You'd probably also need a preamp to boost FastTrack, i ended up using a Yamaha analogue mixing board, but just for the preamps which are superb. The quality i can now squeeze out of my SA500 with the addition of a stomp box is positively frightening compared to where i was at say even 1 year ago, relying on a practice amp as a preamp -
don't go there: real guitar amps will fry the tonal quality by the time it hits your pc, unless you are planning to mic your amps - can't see any reason why you couldn't do that with a preamped decent microphone
have only scratched the surface of MC5 relying more on real-time instruments than software which i use like an old fashioned multi-tracker, but the possibilities are awesome
experimented with Reason and it lost me but all these softwares are great if they hit the sweet spot for your musical style
the more powerful your computer the more fun you will have - certainly wouldn't recommend MC5 on anything under a 2 Core.
Ric