new to audio programming

im new to audio programming and need a few questions answered. let me start
out by saying what i am trying to accomplish.

i want to create a program that accepts input from a sound card and listen
to it, like an amplifier. inbetween the input and output i want to be able to
use the directx effects on the stream, preferably any reasonable number at
once. then i want the option to record the sound or not, to a wav file. here
is the thing, i want this to all be going on in real time. i guess the
closest analogy i can think of is a guitar amplifier and a bunch of effect
pedals with a recorder on the output of the amp. sorry if this is confusing.
i will try to explain it better if needed.

now, i know i really only have 2 choices, either dsound or dmusic. the
problem is i dont know which can do all that i need and i dont want to spend
a lot of time on one to find out later i need the other. i also want to be
able to support all the way back to windows 98, but from what ive seen in the
docs, that doesnt look possible. also, am i wrong in thinking i cannot chain
together effects in dsound.

could someone please point me in the right direction? any advise would be
appreciated.
.