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Recording guitar direct! what do you use?

I've been getting ok results recording my guitar direct to my DAW but would like to see if anyone has any suggestions or tips to give it some "air" or "room space". in other words it sounds very dry and in your face.

here is my setup.

guitar/ effects pedals(eq/distortion/chorus/delay)/ tube preamp/ ADA Microcab(cabinet simulator)/ Emu 1212m(sound card).

help!Got a $1,000 Buget trying to buils a nice audio studio

Hello I'm new to this forum. But I'm tryin to build a Nice studio for some local kids in my area that want to express themselve vocally. Can some help me get the most bang for my buck. I do video production. That part of my studio is mostly a ditgital. So I would Love a couple links. & etc.
P.s. Just purchase a p.c. I'm a Windows user.
Thanks A Mill. 8-)