Yes to the recording part, at least. You can use Minim, which is a sound library included with Processing, and it certainly includes the ability to record sounds. I'm not entirely sure what you mean by the second part of your question, though. Could you elaborate?

Ah forgive me, I'll explain a better example.  If I was to play my electric guitar using different notes and specific chords could I save these recordings so that when I play them again an Arduino can remember them / recall the values etc.

Hi,

You can use Beads too. A great library for real time music applications

http://www.beadsproject.net/

f.-