I pretty much second the audio interface approach above, but regards microphones I'm gonna have to disagree (sorry freebase). If you're just putting together a basic home rig, I'd just get one decent large diaphragm condensor microphone, and forget about getting a dynamic mic.
Spend the extra money on a Condensor. Condensors can be more delicate, so don't crank your guitar amp and put it against the grille. Six inches to a foot or so should be fine so long as you're not turning it up until the windows rattle.
Dynamic mics can handle much higher sound pressure levels, so they're used for close-mic'ing snare drums and loud guitar amplifiers. The thing most people don't realise is that to get the full frequency range out of the microphone you have to have it loud. Real loud. If you don't, you don't get a very good high frequency response, so the resulting recording always sounds dull.
Condensor microphones capture a much more accurate, detailed 'picture' of the sound, and are much better at low volumes, and they can handle much higher volumes than people expect. So most home recordists are better served by condensor microphones. Spend more than $69 dollars too.
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