I'm not going to pretend to know everything about copyrighting music, but I can at least get you on the right track.
First things first, you should know that your work is your work, copyrighted, as soon as you put it into some kind of physical form (written, recorded, etc).
The reason we still go through with the paperwork of registering that copyright is that you want definitive proof of the date of your copyright. This way, if someone else write something that is specifically ripping off your work, you can prove that you're the one who came up with it first.
It's not a very complicated process. http://www.copyright.gov/ is the official site to which you submit your paperwork. There are two different forms, which are covered quite beautifully in this DIY Musician article.
There is a small fee, but it is worth it to know that you have the right type of legal proof in your possession. The last thing you need is an actual case where you're not in the wrong and you still wind up paying.
This copyright is your protection against that terrible situation- say another person were to hear that something you've been playing at shows for years, decide that it sounds remarkably similar to something he/she just wrote. Say he/she decided to insist that you either cease playing (or worse, pay them for) "their work". If they have the correct paperwork and you don't, you lose.
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