As the other person mentioned, multitrack keeps the tracks seperate, where overdubs actually go over a track. So in theory, you can have an overdub on one track, and the rest be normal tracks. I would like to warn you though, if you do either, you are going to have problems when you play the songs live. When my band recorded our demo, it was just a good raw demo. Not many effects, a single guitar, bass, drums. In fact, we wanted to record it live, no multitracking or overdubs. It is really hard to re-create the sound live, when you only have one guitar, and the demo has two or three. Perhaps you need to look at mic placement, effects, and a couple other things, so that your guitar won't sound thin, but won't be so massive that you can't do it live. On our demo, I mic'd my amp in every direction, eq'd and Compressed between the amp and guitar, played loud (Tube amps, have to be loud, but I still love them), ran the signal from the mic's through another effects processor (reverb & ect) and it all came out sounding huge. When setting up your recording rig, remember that the mic's are not ever going to sound like it does live. So adjust your sound with that in consideration. It may sound too bright live, but after being ran through a mic, it may actually sound perfect. If your making a home demo, work for a while and listen to something you've recorded. Then adjust all the settings based on what you hear from the recording. If your in the studio and paying for the time, I'd suggest finding someone who has recording gear and won't charge you an arm and a leg, and try it out there. I have always believed that you shoot yourself in the foot when you have more things on a CD than what you have live. Have you ever been to a concert when they really suck, and sound nothing like the CD. Booking agents feel the same way you felt. Cheated, and may never book your band again, because you sound nothing like what your demo did.