If you had an inkling to go analog I'd buy a Tascam 388 and a Fostex 20 or a Teac 22-2. That will set you back about a $750 or so.
If not, M-Audio has decent multitrack cards under $200, Delta 44 or 1010LT. The latter I've seen advertised at about $150. A decent PC is required, but you can shop around local or peruse Craigslist, and there is probably some kid who will build you one for $500-1000, or you can go to Fry's. If you get an off the shelf kind of thing from Fry's you want to make sure you optimize the OS that is installed, (ie turn off all the unnecessary crap running in the background.)
Or you can download
64Studio or Ubuntu Studio and have a stand alone DAW o/s for free, just make sure the sound card you get is supported on Linux, e.g. M-Audio, and RME, the latter is going to cost you more. If you stay with Windows, Kristal audio is free, (limited to 16 tracks.)
If you already have a hi-fi, it can double as your monitor system depending on how you set up your gear/room. Otherwise figure $200-400 for monitoring. You can get by on that, as long as you reference your monitors to known quanities, i.e. play some music in similar style through the system to get to know how they sound in your environment.
Some of the mid range Chinese microphones aren't too bad, in the $100-200 range, MXL comes to mind, and you can mod them up if so inclined. You may need some more preamps too. Are you into DIY at all? if so, you can build a tube based preamp for about $50-100 if you are really frugal w/ parts shopping. (Google New York Dave one bottle or McTube) or again see PAIA. Get yourself a good book on home recording: $30. I bought "the musician's guide to home recording" when it came out, it is geared toward analog recording, but lots of useful info. There are plenty of books like that, I think Craig Anderton has one also, with Sting on the cover and a Teac 3340. Look at southside glen's independentrecording.net has lots of book recommendations.
Don't forget ancillary stuff like mic stands and cables. After a while that can add up, but a decent mic stand shouldn't set you back more than $30 tops. So, figure about $100-150 for that. You probably want at least three with booms. Ditto on the SM57, good versatile dynamic microphone. $100. Be careful not to buy used, as a lot of counterfeit ones floating around.
For acoustic guitar you have some options. PAIA has a M+S electret kit for about US$110.
Check out the show me your studio thread, which has some "gear p***" pictures, but can give you some ideas on room treatment.
I'm assuming you're going to use a drum machine, have you factored in that cost? You have a lot of options there, depending on how many outputs you want etc, or if you intend to use software only.