Yo Somelsewhere! Welcome to the board! Everybody has their own opinions, and often the more they know, the more confusing their opinions are. You have asked 2 questions, and the answer to each depends on the answer to the other. The first one is:
How can I get a good acoustic guitar sound (and I assume, vocals) into a computer for processing?
The second is:
How do I do this for $500?
First, understand that your budget is very limited, and we're not even talking about adding additional tracks-drums, bass, etc.
I'm going to make a couple of suggestions, one of which is standard, and the other of which is a little radical. I'll start with a basic tutorial on mic'ing acoustic guitar. I did that here:
http://www.homerecording.com/bbs/sho...08#post2850508
Secondly, how do we record vocals? Usually with a single cardioid mic, which can be a condenser or a dynamic. No one can predict what mic(s) will make you sound good. They are like shoes. They either fit, or they don't.
Many people will suggest that the first thing you need to do is deal with your recording space, as a good-sounding room is essential to recording acoustic instruments. They are right, and as you don't have the budget for major room modifications, you'll need to ask a lot of questions about DIY. Ethan Winer, Massive Master, and Harvey Gerst, all on this board, are particularly knowledgable in that area.
Meanwhile, back to gear. You will need one or more mics, and the needs of acoustic guitar and vocals are not always the same. Next, you will need a preamplifier, to raise the low output of the mic(s) to line level. Note that if you want to use condenser mics, your preamp needs to provide "phantom power", which is sent back up the mic cable to power the mic.Then you need Analog to Digital (A-D) conversion, to change the analog signal to a digital signal for transfer, probably by USB or firewire. Then you will need something to listen with while you are recording, in other words, a good set of headphones. Initially, you will listen to the music coming out of the computer on your computer monitors. Later, you will probably want specialized monitors- prepare for continuing sticker shock. Of course, you will need audio processing software (you mentioned Garage Band).
OK, to do all of this as separate components, you don't have the budget, even for entry level, so some of these components will have to be combined.
First, I'll tell you how most people are doing it, and then I'll tell you how I would do it.
Most folks would start with a USB or firewire-based audio interface. There are lots by M-Audio, Presonus, Lexicon, and Line 6 in your price range. Generally, you will be advised to steer clear of Behringer and Nady gear, no matter how good the price looks. Mostly, I agree.
Here's typical model in your price range:
http://www.8thstreet.com/product.asp?ProductCode=12031&Category=Audio_Interfaces
OK- that gives you 2 preamps (not great ones), phantom power, and A-D conversion. For software, Audacity is free, and many people here like Reaper, which is $50, and by all accounts, is worth every penny of it. Then, I would get one cheap large diaphragm condenser mic, such as:
http://www.8thstreet.com/product.asp?ProductCode=6458&Category=Microphones
and perhaps a matched pair of small diaphagm condenser mics (good for acoustic guitar, but not generally used for vocals), such as:
http://www.8thstreet.com/product.asp?ProductCode=31442&Category=Microphones
Some folks, and some voices, prefer the sound of a cheap dynamic mic to a cheap condenser mic, and will recommend this:
http://www.8thstreet.com/product.asp?ProductCode=1361&Category=Microphones
I personally prefer this one, but that's just me:
http://www.8thstreet.com/product.asp?ProductCode=3202&Category=Microphones
Then you need some "cans" (headphones) Everybody has their favorite- I like these:
http://www.8thstreet.com/product.asp?ProductCode=10952&Category=Monitoring
Of course, your next step is improving your room, and getting real monitors for mixing.
OK, I did it for about $500, but my own suggestion is more radical. As time goes on, you will discover the need to *upgrade*. That 2-channel audio interface will need better preamps, better A-D conversion, more channels. Those small diaphragm condensers will start to sound cheap (they are). Those headphones and the cheap dynamic mic will never go away- you'll always find uses for them. The same goes for the V67, which isn't a bad utility condenser.
My radical suggestion is this:
http://www.8thstreet.com/product.asp?ProductCode=32943&Category=Recorders
and here's why: First, it's a USB-based interface with *4* preamps. You can use the built-in small diaphragm condensers simultaneously with any other 2 mics, and it provides phantom power. It can be used directly as an audio interface, and comes with Cubase software, or it can download WAV files that can be processed in any software you like.It also records MP3's, in a variety of resolutions, so it's good for interviews or lecture, where high quality audio reproduction is not necessary. It is portable, fits in a guitar case, and has its own onboard effects/reverb (which doesn't prevent you from using the effects in whatever software you choose). It's a metronome, a tuner. You can plug a stereo mic with a stereo miniplug into it. Check these things on ebay, and for that price, you will find them with lots of accessories, first of which is a 16gb or 32gb SD card. It comes with a 1gb card, which will need to be upgraded for longer recording times.
I believe that even after you upgrade to a real studio, a device like the H4n remains useful. It is the PDA of a recording artist, and it will initially meet all of the requirements of an entry-level audio interface. BTW, do not be sucked in by the H4n's predecessor, the H4. It's cheaper, but not as reliable or as durable, and the interface is not particularly intuitive. I would find a deal on ebay with at least a 16 gig card, and add a good pair of headphones, and a basic condenser or dynamic mic for main vocals. For the record, I started recording on a PXR4 Pandora, which is also a micro-recorder, but after several years, I have upgraded to
the H4n, just because the Pandora has become obsolete. I now have close to $40,000 invested in the studio, but I still use a pocket recorder for a variety of purposes. I hope you find the right solution, however you end up doing it. Best of luck-Richie