Well don't be afraid to ask questions my friend. (Even though I did that song fast, if you like the guitar sound now and I think it's not that good, I think you won't believe it when I get back with the new remixes)
You don't have to use an expansive guitar to get a good guitar sound. A very cheap guitar can do it.
Nowadays, most of the sounds are digital. I use Guitar Rig 4 as a VST plug-in in Cubase. I think you can try a demo version on their website.
I use double humbuckers pickups, but again I think it doesn't matter since the program will take your clean guitar sound and change it completely.