I disagree with your recommendation, Kallum.

The advantage of using the USB connection, assuming his DAW will see it as an input, is that it is pure digital from the POD to the computer. Using the line-outs from the POD means you are doing a digital->analogue conversion at the output of the POD, then an analogue->digital conversion at the input of the Scarlett. You lose quality each time you do that conversion, not to mention adding latency.

I don't use my POD anymore, but when I did I tried both methods, and the sound quality of direct via USB was noticeably better.

As for your side note, all PODs as far as I know, certainly my XT and his X500, have amp (and cabinet and microphone) emulation.

Speaking of amp emulation via software, I'm currently using the Scuffham s-gear amp simulator. I highly recommend it to anyone that might be looking for a software solution, it is very good indeed!