Arduino? Nope, not with the built-in 10bit ADC's anyway. If you're wanting to do ADC-DAC (you could also just be doing ADC for sampling and output a control signal via PWM), then latency would be stupid long with an Arduino too, especially if you use a library for an external ADC/DAC, so that completely writes it off.
As BurningTantalum mentions, guitar signals are NOT microvolts. Typical single coils will output a very short transient attack around 1v peak, with the decay being more like 100mV peak. Humbuckers or active pickups will put out 2V peak transients or higher.
Also, 80Hz-1200Hz discounts alternate tunings, down-tunings, extended range instruments, 7/8/9/10/12 string guitars, etc. etc. Might want to increase your bandwidth.
What you should look into is the Spin Semi FV-1. It's a DSP chip designed specifically for guitar effects. There's also a dev board available (around $100USD from memory).
It sounds like you're biting off WAY more than you can chew given your level of experience. I'd recommend you start with either DSP on a computer, or some simple analogue effects before you jump into this project. You're going to need to mix both of those skills together in order to achieve your goals for this project.