Presonus Audiobox USB 2x2 ($149.95)
Product description on Musician's Friend
This is the audio interface you'll need in order to record your instruments into your music program either via microphone or direct in. The sugar on top is that it comes with Cubase LE 4, which you can use to record with and edit/mix/master your audio.
Before you decide to buy a different software program, give the free one included with the audio interface a try. It may end up meeting your needs and eliminating the need to spend more money on something else.
So that takes care of both your hardware and software requirements.
Peripheral equipment
Microphones
For miking a guitar or bass amp, your best bet is a
Shure SM57, which is an industry standard. For vocals, I've found that you get excellent results with a Large Diaphragm Condenser.
Condenser microphone:
MXL 990 ($69.99)
I wouldn't use this on your instruments unless you're using it as a room ambiance mic in conjunction with your instrument mic.
This should be your main vocal microphone. I guarantee you'll be impressed.
(invest in a pop filter, because condensers REALLY pick up plosives. You can get a pop filter at Musiciansfriend.com for a few bucks.)
Instrument microphone:
If you don't want to shell out the 99 bones for a single 57, here's an alternative:
EV Cobalt cO4 ($69.99 - buy one get one free!)
I just found out about this microphone and although you'd expect it to be a throwaway, there are good reviews on it.
Ultimately, you'd have to do your own tests to make your own assumptions, but it's not too big of a purchase deal when you factor in the return policy.
Having two instrument microphones also opens up stereo miking possibilities.
Considerations:
So far, that's all the main items and you total out to:
$289.93
Still in the green, you have enough money to buy a couple microphone cables, a pop filter, and whatever else you decide.
If you have any questions regarding the recommendations or the general implementation of them, please do not hesitate to ask.