[All_¥our_Bass]

I would probably get a new guitar. My pratice amp sounds surprisingly good.

[budda]

yours might.. i doubt his does.

[7 Dying Trees]

Depends, here's my take:

1) Get a new amp if you find that the sound of your amp is limiting your will to play, ie, you don't want to play

2) Get a new guitar if the guitar is limiting your ability to progress

Simple really!

As to what you should replace it with, well, amp wise I'd say get a POD, it'll sound better than what you have now, you can use it with earphones, and second hand ones shouldn't be too much money.

Guitar wise, well, go out to some shops, with a fixed budget, try out some guitars and then attempt to go with the one that plays the best for you instead of the coolest looking one

[Aberak]

Originally Posted by Leon

job

Well I think more info is needed, what kind of condition is your gear in?

Like it was said earlier you don't need gig worthy gear right now, so you could get away with just using an effects processor and headphones for right now. Also if your guitar is beat up and not well taken care of it might be best to get a new guitar first so you have something half way decent to learn stuff on or write on.

[Demeyes]

Get an new amp. You probably won't even realise how bad your current amp sounds until you upgrade. Get a half decent amp and you can start working on your tone. You'll sound miles better anyway with a better amp. You'll be able to jam with other people too.
Get a decent 1x12 combo and you'll be so better off than that amp you have now. A new guitar won't sound much better through a practice amp, regardless of what it is. If your guitar plays badly then give it to someone who knows what they are doing to set it up well. Almost any electric can be made to play decently with an awesome setup.

[metalheadpunk]

if you're looking to improve your tone, amp all the way.