I use a software program called ACID Pro 4.0 to make the lesson samples and jam track/loops. I have a soundcard called Audigy 2. I start off recording everything at 48,000 Hz, 24 bit Stereo for high quality sound, then bump down the resolution when needed. I'll use Sound Forge 6.0 for any audio editing.
You basicaly need a computer, soundcard, audio multi-track program, very small mixer to plug a mic into or your guitar pre-amp(output of mixer goes to the input of your soundcard, and away you go.
There are many audio multi-track programs out there, many companies have demo programs you can download for a free trial. They all do pretty much the same thing, you just have to find one that you like the interface and setup/funtionality and ease of use.