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i use ableton for my FX. kinda works like this:
download all the cool free VST plugins you want. flanger and pingpong delays and echos and whatever. load them into ableton. have a nice firewire/pci/pcmcia interface with a minimum of 2x2 I/O and a good low latency. load an audio track with all your fx on it from the input on your interface and just turn them on and off and tweak them out with a midi controller. ive been using my radium 61, but am getting a UC-33e (basically a box of nobs and faders and buttons). sound quality is awesome, and fx possibilities are endless. you can also sample and edit in real time, play loops, and load up virtual instuments if you wanna add in live audio.
latency is the key here, if you are running XP make sure you use ASIO drivers, OSX only has core audio, but i can still get under 10ms latency at 256/96 or 512/192
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