songstar. here are my comments.
1. you have a powerfull pc. make sure you have dma enabled on your
hard drive. audio needs it. you should be able to do 40 tracks easy.
2. the live is ok for now but not great convertors in a lot of folks opinion.
but ok for now. you might consider better once you get going more.
eg lots of folks are happy with deltas for the price.
3. i would just try that cheap mic 100 i mentioned with the dynamic.
line out into LINE IN of live. you will need a mini jack convertor plug for the live line in. NOT MIC IN.
also NOTE - make sure line in is enabled in the windows VOLUME APPLET.
4. in powertracks for vocals hers what i do. record a vocal track. then i duplicate it. and powertracks comes with all sorts of built in effects like reverb, echo etc. i add echo in slight amount to the duplicate track then mix it in with the dry track. just try the demo.
in summary it seems all you need is that cheap behr preamp to get you started plus powertracks i suggested and your recording.
IDEALLY if you get serious about the daw you might consider a second
fast hard drive. and record your tracks on it while keeping win on the first.
this is the way i record.
total cost - mic pre plus powertracks , about 100 bucks.
if you anticipate needing to record many channels at the same time in future
consider a yamaha mg mixer and a delta sound card.
if you want DIRT CHEAP , you could plug the dynamic into an old cassette
deck mic in (dynamic will need a xlr to qtr inch jack convertor) then cass dek line out to line in of live.
for acoustic guitar i would consider at some point a higher quality condenser mic. but this needs something like
the mic100 or a mixer with 48volt phantom power. there are lots of condensors. a lot of folks favor CAD gxl
LDC for acoustic . its a 50 buck mic.
just some ideas to help you.