Ok, thanks so much! Yeah, I noticed the bar turning red right before the static appeared so I think you are right that it is clipping. I will check it out and see if it fixes it. Thanks again for all your help!
Audacity, afaik, is only an audio editing DAW… it doesnt have the capability to use VST instruments as sound source…
I recommend downloading a DAW like Reaper, Cakewalk, LMMS, Waveform Free, Pro Tools | First, or the likes of these… These are free DAWs that can load plugins, record your performance, enhance it using FX and save the music to a file.