I just got through getting through some of this myself, so hope I can help...
As for the soundcard...I have a Delta 44 which is really nice. It has 4 inputs and 4 outputs of audio. It has a good low latency which is good as well. There are some higher Deltas which also include MIDI on the breakout boxes (if you are unfamiliar with this, a cable is connected to the actual soundcard, and the cable runs to a box where all the I/Os are-so the inputs and outputs don't come right from the card itself).
Anyhow, as for a program, I am using Home Studio 2002(Cakewalk) which I feel is great for a beginner with software recording. I have also heard Sonar(Cakewalk) and Cubase as being really good as well. Cubase VST is what I plan to upgrade to at some point.
As for the computer, I have not yet had any problem with the 128 RAM. I am working on a Pentium 4 at 1.6g speed. I would however recommend getting more hard drive space. Probably at least 40gigs. I record at a 24bit rate and then mix down to 16 in the end, and the sound is much better (in my opinion)than recording in 16 bit all the time. And the 24 bit sessions will REALLY eat up your hard drive space fast.
Hope this helps, if I can do anything else, let me know!
'Chip