^ Here is what I came up with for $200 (I know thats over-budget, but I think you will be happier with better mics):
http://www.musiciansfriend.com/srs7/...se_pid/703606/
http://www.musiciansfriend.com/srs7/...se_pid/273166/
That should get you started with a basic home studio. I would recommend getting a better audio interface (get a desktop PC and PCI audio input card), a mixer, and more mics sometime down the road. Using one mic at a time works, but you will get a much better sound out of a couple mics (especially on drums). You can also make your own pop filter with an old set of pantyhose and a wire coat hanger. Does the same exact thing that the $20 ones do, but saves you some money. You will probably want to get a mic stand as well. Until you can afford to get this stuff, or while your waiting for it to arrive, do a ton of reading and get studied up on recording techniques and tips. There are a ton of sites out there, just look for them. Hope this all helps!