I am wondering about external soundcards. Since they connect through USB, does that mean I would not need an internal soundcard? If so, since they are external would that make them better for recording??

nope, no need for an internal soundcard if you get an external one. it would only be better for recording if it has a direct 1/4" input (instrument cable size) allowing you to go from your amp to the soundcard with a cable. but if you do this, you will be completely bypassing your cabinet (the speaker, if it's a combo amp).. depending on what kind of amp you have, it may sound better or may sound worse. i know i got a lot of buzz when i went straight from my amp to my sound card via 1/8" cable with adapter. i get much better results now using a good quality microphone.. i just place the mic in front of my amp. so really, internal or external sound cards will make no difference when it comes to recording. get a decent microphone at a local electronics store and experiment.