AUDIO INTERFACE
No, integrated or multimedia sound cards are not suited to make music! Not if you want a decent result or if you want to use real-time effects. To make music, you have to make a step forward and get an audio interface. They are separate devices, connected to the computer through a USB or a Firewire cable. Check before you buy! All computers come with USB connectors but Firewire connectors are not that common, especially with laptop computers.
Audio interfaces have several IN connectors (plugs in which you can connect microphones or instruments such as a guitar), usually between 2 and 8 connectors and several OUT connectors as well. Almost all of them have MIDI connectors, a headset connector and digital connectors (I have never used these myself, but you may be interested in having some...).
Compared with a simple sound card, audio interfaces differ thanks to the higher quality of their components which deliver a more faithful sound quality, their analog/digital converters are better (they change the analog sound you record into digital data that your music software can use), they include preamplifiers of various quality depending on the brand and the price range... They also allow you to simultaneously record one instrument for each IN connection. For instance, you may record a band with 2 guitar players, 1 bass player, 1 singer and one drum set, and in your DAW, you will get 1 track per musician. This is impossible to achieve with basic sound cards.
Another advantage with audio interfaces is to allow you to play or record without any latency. Latency is the time between your playing an instrument (like a guitar or a keyboard) and when you hear the sound in your speakers or your headset. With a basic sound card, there can be half a second and this makes any good recording nearly impossible to achieve. There is a solution though, if you cannot afford buying an audio interface: use Asio4all, a small program that will strongly reduce the latency of basic sound cards. Official website: click here.
Audio interfaces on the other hand will allow you to set the latency so that it becomes inaudible (down to only a few milliseconds). But this has a cost: the shorter the latency, the more the processor will be busy. If your processor is not powerful enough, setting the latency to a low level will generate irritating noises (craking and crackling sounds, sound breaks). So there might be some compromises to do. But anyway, audio interfaces are a must to make music in a home studio.
As always, pick the best quality you can afford, evaluate your needs so you choose the right device, get information from other users (on music websites such as Audiofanzine)... Choose carefully.
Recommended brands
(click on the pictures to see the various models of these brands on the Audiofanzine website, and read users' opinions)
RME Audio
MOTU
Alesis
Edirol
Focusrite
M-Audio
PreSonus