Yo Macaloon! Recording, even a "decent sounding" CD, costs money, a lot of it. Get over it. Frankly, with a nonexistent budget, Your best bet is to find a semi-pro who has a bunch of gear, and will record you for the practice or for real cheap. Spook around on this board, because you might find that guy (or girl) here. It's a pretty good place to start looking. Ball park- a really basic system, I mean stripped down, is about a grand. Kickass project studio- $20 grand. Fly by night pro- $30-50 grand Serious pro- $100 grand and up.
While you're contemplating how to get money to buy gear (usually involves work), study gear, so when you get some money, you won't waste it on the wrong gear. Most people will suggest the computer route bang for buck, and that makes more sense if you intend to use canned drums. To do any effective recording on a budget, you will need a soundcard, your existing computer, a microphone preamp, probably 2 channels, a pair of small diaphragm condensers, a large diaphragm condenser, and a dynamic mic. You will need a mic stand, several cables (good ones cost more than you think), a pop filter (you can make that), and for what you want to record, you'll want to add a compressor as soon as the money becomes available, then FX/Reverb. All of this assumes you can play the material one track at a time. If you have a PA, you can record yourself as a live band, with a pair of mics in stereo. It limits your editing capabilities, but if you have a half decent PA, you can get surprisingly good sound in the right room. Find that room.
I hope this is helping- Here's a few pieces of all-star cheap gear-
Dynamic mic-Shure SM57 $80 new- find a used one on ebay
small diaphragm condensers-Oktava MC012 price varies at Guitar Centers only- $100-165 the pair
large diaphragm condenser- Studio Projects B-1 $80, Marshall MXL V67G $100
preamp- M-Audio DMP-3- discontinued, but still a few around. Occasionally sold at GC for $120, but usually $200.
compressor- FMR Audio RNC $180
FX/Reverb- TC Electronics M300- $200
I won't recommend sound cards, because I don't know anything about them really. I'm used to hard drive standalone and am learning Pro Tools based DAW.
Last just for fun- heres my idea of wicked cheap but surprisingly effective.-
Fostex MR-8 8 track standalone digital recorder $250, and those 2 little Oktavas. Phantom power and improved gain structure is added by M Audio Audiobuddy, an $80 preamp. One mic stand- $20. A stereo mic mount $10 and some cables (variable depending on quality), and you're good to go. See- it takes money- get over it.-Good luck, and welcome to the board!
You do get some good quality (I assume) out of the Fostex. Our Roland pres were plenty good for starting out.