WhitChocolate- what will you be recording? I know you have a drum machine. You are rapping, so you will need a microphone for your vocals. What else will you be recording besides vocals and beats? Will you be working with samples? Other instruments (ie keyboard, guitar, horns, etc)?
It's a hard question to answer (what do I need?)- there are SO many options out there that it can be overwhelming, especially for someone who is new to this.
You can go the free way and tape yourself on a boombox, or you could start a little bit higher by purchasing a four track tape recorder. The quality will be higher, but not of the highest quality. However, it will give you at least a base to start from . From there, you could figure out whether you wanted to become involved in using your computer, or purchasing a larger tape recorder. Or if you just wanted to say "fuck it" and go to Ed's studio
Is there a music store in your area? Go there and check out what they have to offer. If a particular piece of equipment interests you, come back here and post what it is (as well as its price). I am sure that you will receive many replies regarding its quality and usefulness for your setup.
So...get to the store, check out microphones and four tracks. Don't buy anything yet. Assuming that the salesperson isn't an idiot, they ought to be able to hook the thing up for you and demonstrate it.
Figure out WHAT you want to record- beats and rhymes only, or other musicians too.
Figure out how much money you can spend right now- I know it sounds like a catch22 - you don't know what your budget is, because you don't know how much it costs, yet if you don't know how much it costs, you don't know what your budget will be. Pisser, huh? Just check it out for now, and that will give you some ideas on the different paths you can choose. I am not saying that the four track is the best one for you, but if you know more about what you are looking for, it becomes easier to find.
Oh yeah, Ken Webber? Search around any of the forum topics, and his name will pop up. He's not a popular guy...well, he IS popular, just not in a good way.
And another thing- my knowledge is relatively small in this area, but there are a LOT of people here who know what they're doing and are more than willing to help (download some of the songs from the MP3 mixing clinic and you'll see what I mean). Good luck!