Very well. I think you need a 2 channel USB interface, at least one basic dynamic mic, 2 if you plan on playing and singing simultaneously, a straight mic stand for the vocal mic, and a short boom stand for the amp mic. While recording electric directly is good for practice and brainstorming, I strongly recommend recording electric with real microphones. I'm assuming you already have an amp you like. If not, that's the first thing you need. Your current software is adequate for your simple needs.
Then you will need a good set of closed back headphones, 2 XLR to XLR mic leads, a headphone extension lead, and a USB lead. Now comes the painful part- monitor speakers. People try every possible excuse and substitution to get out of this, but in the end, they wind up buying monitors, and probably a pair of speaker stands. Unlike home stereo speakers, monitors are not made to sound good. They are made to tell the truth. You are asking for "good sound". Without monitors, you wouldn't know if you had it. Hopefully, some of the board members in Ireland and England will jump in and recommend kit that is commonly used where you are. Some of it may be the same as us. I'll show you examples of what I might recommend. Regarding monitors, I'll show you inexpensive ones, but really good ones are dear indeed.
First the interface. For an electric guitarist, I like this:
http://www.8thstreet.com/product.asp?ProductCode=60669&Category=Audio_Interfaces
It has a lot of available guitar effects for the practice and brainstorming I mentioned above, and the preamps are pretty good as they go. I also like this:
http://www.8thstreet.com/product.asp?ProductCode=40819&Category=Audio_Interfaces
Microphones: You need a good basic dynamic mice to start, at least for the amp. They work well for vocals on some people, not so well on others. Many folks in the USA swear by this:
http://www.8thstreet.com/product.asp?ProductCode=1361&Category=Microphones
I like this:
http://www.8thstreet.com/product.asp?ProductCode=3202&Category=Microphones
If you have any chance of finding one, look around for an old, used AKG D320A, B, or C (all good). I prefer it to either of the above, and they can often be found for cheap on ebay, etc.
If you find that the dynamic isn't giving you the vocal sound you want, and you are looking for alternatives for the guitar amp, especially for cleaner sounds, you may want to invest in a condenser mic (you call them capacitor mics, I think). I like this, because it is a good vocal mic, and it rocks on guitar cabinets:
http://www.8thstreet.com/product.asp?ProductCode=24183&Category=Microphones
This may be a less expensive alternative:
http://www.8thstreet.com/product.asp?ProductCode=60656&Category=Microphones
I'd start with the dynamic, and see if you are happy with the sound you get.
Mic stands: any straight stand is fine for the vocal mic, although you may want a boom if you are playing guitar simultaneously. Here's a short boom for the amp:
http://www.8thstreet.com/product.asp?ProductCode=1911&Category=Stands
Headphones: I'd just get a set of these, and never look back:
http://www.8thstreet.com/product.asp?ProductCode=10952&Category=Monitoring
Moniitors: This is always tough, because good ones are the price of a pretty good motorcycle. I can only offer entry-level models. I feel your pain:
http://www.8thstreet.com/product.asp?ProductCode=43453&Category=Monitoring
They are weak on bass, due to small drivers, but work rather well with this:
http://www.sweetwater.com/store/detail/SBX10
That's basically the setup I use, and it has served me very well. If you have to go cheaper, these can be used to start, and later on, when you get better monitors, they make great computer speakers:
http://www.8thstreet.com/product.asp?ProductCode=42788&Category=Monitoring
I don't often recommend Behringer gear, except for a few pieces, but in the dirt-cheap monitor group, these aren't too bad:
http://www.8thstreet.com/product.asp?ProductCode=24096&Category=Monitoring.
Speaker stands- I prefer adjustable height:
http://www.8thstreet.com/product.asp?ProductCode=24413&Category=Recording_Accessories
I hope any of this turns out to be helpful to you. As I said, other folks from across the pond may offer choices that make more sense in the world of tariffs and duties. Best of luck-Richie