There's a nice program I've been using for my current project called "Multitrack Studio". You can download it here:
http://www.allianceweb.sk/free-download/multitrackstudio.php
All you need is a microphone that plugs into your PC (I use the inputs on my stereo rather than the PC input). The software has a lot of good features for adding effects to the sound. I personally use a separate wave editor to mix and edit the music.
I believe there is a click-track feature built in to keep time (although I haven't used it yet). If there isn't one, I strongly suggest getting a metranome.
As far as distributing it, I've used a few sneaky methods. First of all, I converted some of my works to MP3s, created a website, and put links for downloading my songs.
Second, I've used Peer2Peer filesharing. What I've done is changed the name of the author (in the filename only), and used bandnames that somewhat suit the genre of music that I do, to target the audiences that would most likely listen to my music. In the MP3 tags, put yourself (or your band) as the author, and make sure you put your URL in the tags so people can visit your website.
The only thing I can't really help with is copyrighting music. Some people put their recordings in a sealed envelope, and mail it to themselves to get the date stamp. I've tried this here in Canada, and it's been unsuccessful, therefore I need to take the risk of having my music ripped off.
edited to add: I've had some success with people downloading my music.
I hope some of this helps.