I am still a learning newbie myself, so take my advice with caution.
I have been frequenting these forums long enough to learn that a beginner who starves for near professional clean sound would need a Large Diaphragm Condensor microphone, good cable, good soundcard, and a clean preamp.
For 1 channel: Studio Projects VTB-1. For 2 channels: M-Audio DMP3. Multi-channels: SoundCraft mixer (FX8 for live effects and good preamp, M series for "musical" EQ and clean preamp.) Many others also recommend Mackie mixers, but most seem to agree that SoundCraft has better preamp. Although SoundCraft may cost more than Mackie if compared channel for chanel, it's worth spending a few 10-dollar bills to get that improvement in sound quality. After SoundCraft, you have to spend several 100-dollar bills to get a considerable step up on quality on an Allen&Heath mixer. (Well, I'm not sure about that; there may be some other better mixers in between.) I know there are other good mixers from Yamaha and Alesis to consider for very attractive prices, but I would get a popular brand of mixer just because it keeps good resell value and just because I don't want to spend my money on a mixer model that only a few people recommend. I rather jump the bandwagon on these things because there is a higher chance of re-selling the equipment to the other bandwagoners. hehehe. SoundCraft and Mackie are pretty popular brands around here.
I only record vocals. So I use VTB-1 and DMP3 (preference over these two are divided among the people here.) Cool Edit has included a mixer in there, so I don't really want a hardware mixer. If you want to go under 2-300 dollars (retail price) for a mixer to edit EQ, then you might as well use the included mixer in COOL EDIT because cheap mixer adds noise to EQ *yucky*. If you plan to have more than one tracks, then the cheapest way is to record each track at a time with a dedicated, clean preamp. Then lay the tracks into Cool Edit.
Cables should be brand-name like Canare or (I forgot the other popular one) with Neutrik connectors if the cable run is long; if cable run is short like 15ft or so, then cheaper cable is okay, I guess. Soundcard should not have any 1/8" inputs and outputs as its best source; need a card with 1/4" input/output or something. I was lucky enough to get a MIA (non-midi) for $50.
Prices for used equipment: (I either have or have used these equipment and like them enough to recommend them.) You can stick around these forums or on eBay to get these low prices.
-MXL V67G large diaphragm condensor mic - Dark sound ($60)
-SP B1 LDC mic - neutral sound ($80)
-Rode NT1000 or NTK LDC mic - Bright sound ($200 to $350)
-VTB-1 preamp ($100)
-DMP3 preamp ($130)
-SoundCraft FX8 mixer with live effects ($325 used, if you try to look and wait for it.)
-SoundCraft M4 mixer (not sure)
-SoundCraft M8 mixer (not sure)
-SoundCraft M12 mixer (can be bought used on ebay for $325)
Don't like the 3-digits numbers I listed? Then do more research on gears that fit your budget. My initial budget was under $300 for everything. I got greedy and became addicted to clean sound...hahaha. So I researched on prices, bought gears at incredible good deals whenever possible, tried them to see if I like them, and then I sold off for a small profit in used condition (but low price enough for the other buyer to know they're also getting a good deal.) This way, I dont' have to go bankrupt for my new hobby.
There, I just typed out 70% of what I have learned from this forum about the preferred equipment for a nice, clean sound into the computer. To get near-professional quality with effects and all that, it's up to the "home-recording sound-engineer" to be creative and mess around with the effects they have already.
Is my advice correct, o' spirits and masters of the HR.com/BBS forum?