I get really good results ( and I know no one is going to believe this ) with 1 gig PC, Soundblaster Live with Livedrive, and a Behringer UB1832 Pro mixer, an SM57, and a Oktava MK-300 That is pretty much the "heart" of my little modest home studio.
...However, I also have a Boogie Stack, a Marsahall JCM800 Stack,
a rack (or 2) full of mid to top end gear, a Roland V-session with the TD-10, tdw-expanded brain, several guitars and bases, and keys. I'm not bragging here, (Maybe a little..hehe) I'm just saying you can go as basic as a 4 track and a couple mics, or to an extreme. What it really boils down to is good material to record, and a source to record it to. Except for the computer and mixer, the rest I have gathered over years of being in bands and such. So keep in mind, if you are going to have a $200 mixer, don't buy a $1500 mic, and SGT. PEPPER was recorded on two 4 tracks synced to togeather. Also, do some homework on an item before you buy anything.
Only other thing I could add...
....spend some time on sites like this one.