is there a way i can play and record my guitar straight through the computer and use mm effects and record
Yes...and no.
Yes - You can record your guitar using MM-10 through the Line IN jack on your sound card. You must have a Line OUT on your amp or a proper audio interface to do it.
NO - You cannot use the "effects" in MM-10 in real time! They can only be applied to the track AFTER it has been recorded. However, you can use your hardware stompboxes to modify your sound while recording.
Have you set it up as the recording device in Windows and in MMM?
Go to your (Windows) Control Panel...
Control Panel > Sounds and Audio Devices > Audio (tab) > Sound Recording - Default Device
...and make sure your sound card is the listed recording device.
When you go to record something in MAGIX Music Maker, you will click "Record" on the left side of the track you want to record on. Then click on the red Record button on the "transport" (play controls). Where it says, "Please choose audio driver", pick your sound card from the list. Then, click the red Record button to start recording.
Please note that a headphone jack is NOT a Line OUT. Make sure the volume is set low to begin with and carefully increase it. Turning it up too high will result in distortion.
A cost effective alternative would be something like this...