i use Cooledit 2000 (only 70$ to buy! GREAT price! for great software, also a demo version i think it lasts 30days for free),
two AWE64 PCI soundcards (maybe 30$ at MOST for the cards) record vocal and bass (or guitar) on their own cards
i use 2 cheapo KOSS M/6 microphones, for voice, or acoustic (even for micing an amp) i think they were 20$ each when brand new (over 5 years ago)
all together a little under 200$ worth of equipment acquired over 5yrs, and you can record very decent sounding stuff for a at home not a professional newbie! and you dont even need a hotrod PC, i record all my stuff on a pentium 166 with 128mb of ram! works GREAT
try it out! you might become addicted... ive recorded a lot of things so far, and became what i feel is a better musician! you learn so much more when you can record yourself practicing and go back and listen...... etc etc etc..
its good to see your looking at getting into this! i know a lot of people 'frown' upon it as being not as good as tape. etc. etc. etc but youre learning more then they are arent you? when you spend $100~ and have a setup you can begin to record with while they wait and save cash for a reel-to-reel setup!
edit:
http://www.syntrillium.com/cooledit/