HMM.. if you're getting a distorted sound file, you probably are going in too hot. keep your DM10 output low and take the two 1/4" outputs of the DM10 into an insert cable like this one
http://www.sweetwater.com/store/detail/CMP159. Provided you have a 1/8" jack on your PC (most do), you would run into the line in. Then you could use a DAW, or a free program like Audacity to record the sound. You will have to tinker with getting a good level (usually staying around -3, but not redlining at 0 - this adds distortion which is not all that great unless you're into industrial). From there you can add effects, etc, and more tracks (but that can add more complexity issues like latency, etc.).
Hope this helps - good luck!
DeeDubs