Shakeel:
I red you post to Scott, since he is probably busy at a gig today, let me answer your question.
Yes you may "punch in and out" while recording. Just press the digital Recording tab and then select Song Creator, on the bottom of the screen you'l see the options for Rec Start, select "punch in" and enter the mesure to begin the punch in, then Rec End and enter the measure you wish the recording to end. That's it.
Select a couple of measures prior to start the recording and the function will turn the recorder on and off as you play.
Hope this helps you.
Mario