I'm using a PreSonus FireBox. It's a Firewire unit with two preamp inputs (you can plug a mic cable or a 1/4" cable in those inputs), two line inputs (I have a two channel mic pre that I plug in them) and two S/P-DIF inputs (those are digital inputs - I don't use them) and quite a few outputs - I only use the main outs, but I suppose you could use the other outs and the line inputs for an effects loop.
M-Audio makes a similar unit. I'm positive there are a lot of other choices. I'm not saying that the FireBox is the best, but it has been good to me.
I use Sonar for recording software, but it's expensive and may be overkill for your needs. If you're just "getting your toes wet", check out Reaper -
http://www.reaper.fm/download.php. You can try before you buy and it's inexpensive if you decide to buy.
I love Sonar because I use a lot of MIDI and loops to get things done. I've used it for a long time so I'm familiar with working with it and it comes with very nice plug-ins, both software synthesizers and processing. I've never used Reaper so I'm going by word of mouth. That word of mouth is very strong.
Good luck.
KO