Always try to use ASIO as it gets the lowest  latency (delay)...as a general rule.  As for your band sound....you have one microphone ilnput ....so your flexibility is somewhat limited unless yu record each instrument, one aat a time on separate tracks.  As you can see, MM  is based on samples and you can only record or use one sample at a time...you can combine on playback, but you cant be everything at once in the Record mode.