I want to back up Slackmaster and the others who recommended the Shure SM 57 as the right place to begin. I recently bought the 3DAudioinc.com microphone test CD (49 mics), and the surprise was that the $80 SM57 sounded significantly better (more musical, less colored) than several of the other microphones tested, even though the other mics ranged from $500 to more than $20,000 each.
The point is that Shure is able to provide an unparalleled level of musical quality at the price point due to the sheer volume of SM57s that they sell every year. If the SM 57 were made by a smaller company, it would be competitive with mics costing $250.
You said:
"If i move away from the mic the bass does decrease, so does the entire sound. It will litereally pick nothing up thats not within 2" of it."
That's not a microphone problem -- that's the lack of any sort of mic preamp.
Because this forum is computer-based, it's sometimes easy to forget that the least expensive way to get your music recorded is still cassette tape. Even a decent $40 to $80 Radio Shack tape recorder will have a microphone input (which means it contains circuitry to bring the microphone signal up to line level). Granted, the mic preamp circuitry in a $40 cassette deck isn't going to be studio quality, but it's going to be vastly better than trying to run a mic output directly to your computer's sound card without ANY preamplification.
Also, the least expensive PZM mic from Crown (the Soundgrabber II) can be found on the Internet for $60, and the sound it will capture and record on a $40 cassette deck, even though mono, will be superior to some set-ups costing much more.
At the next level, a $200 minidisc recorder/player and an $85 Sony ECM-907 stereo microphone can lay down stereo tracks that are truly impressive for the cost. Scottish singer/songwriter Martin Stephenson stuck a Sony MZR-70 and the above-mentioned mic in the side pocket of his guitar case, hiked up to a centuries-old, abandoned stone church in the Scottish highlands, which provided natural reverb, and recorded an entire album of song and
acoustic guitar that will blow your mind with its quality.
In our quest for "the best," it's important not to miss the opportunities to do things on a shoestring along the way. Otherwise, we're always waiting to have the perfect "stuff" before we start experimenting (and learning) the art of recording. The challenge is not to make a great recording with half a million dollars worth of studio equipment; it's to make a solid recording with whatever you can afford and have on hand, even if it's next to nothing.
Best wishes,
Mark H.