Hi Kiwi,
Yes, you would plug the stereo mini-jack from the preamp into the audio input jack on the back of the computer. That's the one with the arrow pointing to it's center. The Preamp will be the proper impedence for the job.
I used a free download editor. Can't find it right now, but I'm sure I have it archived somewhere. Will let you know when I find it. You do not really have to have an editor. You can record the entire track or stop and record each song manually. Again, entire track has to play, no browsing. Separated you will be able to pick the song you want.
You will be recording the sound coming into the jack using any good audio player that has the record feature. Record in the Wav format and burn them to a cd or dvd.
The SOUND RECORDER comes with Windoze, but will only record 30 seconds by design (Sound famliar?). You can get around that by recoding 30 seconds and then copying that enough times to get the time you need. Then copy your stuff over that file. Good enough for practice until you can locate a good editor.
I don't use Nero, but am pretty sure it will not divide anything for you. It will burn anything you produce to a CD/DVD.
Maybe this will get you started. Any more questions, just ask.
Luck, Jim