I have used N-Track, Cakewalk Home Studio 2 XL (before the little icons were added), Cakewalk Plasma, Tracktion, that PG Music thing and Fruity Loops in my quest for the best software
for me.
I now use
Cakewalk Sonar 4 Producer edition for tracking and mixing and Sound Forge for other stuff (I will spare you the details).
N-Track is OK, but I had difficulties when trying to do certain things in it that were very easy to do in Home Studio. I got Tracktion 1 for free and liked it fine, except I am used to mixing with a mixer interface where I can just jump from one fader to the next - Tracktion currently lacks that feature, as far as I know. It also lacks DirectX support and I use quite a few DX plug-ins. On the other hand Tracktion sounds pretty good. For various reasons I was not impressed with Fruity Loops, or that PG Music thing.
Home Studio was my favorite for a while, until I needed more plug-ins than it would allow me to use, which is why I went to N-Track for mixing. This was a real pain. Tracking in Home Studio, bouncing down to audio and importing the audio into N-Track to mix just wasn't working efficiently for me. So, after that project, which was never released, I decided to try Sonar 4 Producer for the next one.
Sonar allows me to do everything I need to do in one setting. It makes organization of tracks much easier, has far more features than any of the others I have tried and simply sounds better. The Sonitus effects simply put any of the ones that come with N-Track to shame. If I want to work with video, or surround sound, I have that capability now. However, Sonar is way more expensive.
If you got Home Studio, you would have the option to upgrade to Sonar later if you wanted/needed to for a cheaper price. If you forsee yourself needing to use lots of plug-ins, N-Track has the advantage over HS, but it is just not as stable of a product. N-Track also took longer for me to setup the interface the way I needed it for certain tasks and it often forgot the settings. Cakewalk is far simpler in that respect (althjough I have not tried the newer version of HS - with the silly icons). For MIDI work, Cakewalk is hard to beat. I never was able to get N-Track to do certain things that were very easy with Sonar and HS, like interfacing with certain pieces of hardware. Once I had tried the trial version of Sonar 4 without any difficulties, I was sold and I was very comfortable with both HS and Sonar in a very short period of time, whereas I never quite got used to N-Track.
Some say that Tracktion is far simpler than anything else, but having done most of my work in large and small analogue studios until the early 90s, I found Tracktion to be contrary to the traditional methods I am familiar with, which made it harder to get used to.
I am a firm believer in "doing it right the first time." Not only is it easier (trust me, I tried it the hard way), but it saves money later. My suggestion would be to not rule out Sonar 4, because the studio version is not as expensive as Producer and does all of the same things, it just doesn't include the Sonitus effects, or surround sound capabilities. You would be less limited than with HS and have a pleasant software environment to work in from the start. You would also not have to upgrade for a while, unless you really wanted a newer version of Sonar. If you got HS and reached its limits (you need just one more track, or effect and it won't allow it) you may end up spending more on an upgrade to something else.