Since I'm assuming that Syc will soon settle on the application he will be using for his recording project, I would also like to drop a piece of advice along technical lines, here.
Never underestimate the value of a good quality microphone. For decent results in recording both music and spoken word, you really, really ought to have a condensor mic. There are some very reasonably priced units out there these days...
http://www.musiciansfriend.com/srs7/...base_id/101887
This link leads to the lowest price battery-powered condensor mic around. I've read several good things about it for artists on a budget.
http://cgi.ebay.com/ws/eBayISAPI.dll...category=41466
The second link will show you the mic I'm most familiar with...the Equitek CAD E-100. I've been using this mic for about five years now, and it is an excellent buy.
Both these mics have the advantage of being battery powered, meaning you do not need phantom power to use them (condensor mics require power, unlike dynamic mics).
There are numerous other considerations to get a good quality project, but this is a very good place to start.