I like it! I have been looking at arduino synths and it is nice to see a good one with source code. There is a problem in your code when reading the serial that I had to change: the ASCII values for common keyboard characters start at 32 (Chart Here: Arduino Reference - Arduino Reference) so I just subtracted 32 from the serial input and then it worked perfectly. I am looking forward to more effects and updates.
I just attached a mono jack connector (one leg to ground, and the other to the digital output) and connected the jack to my soundcard.
Maybe it's not a good practice because arduino outputs 5v and commonly audio is driven at a very lower voltage, but it worked for me...
If you want to do it alright and ensure you will not broke your soundcard or your amplifyer you will have to add a resistor at the arduino digital output!