If you are determined to give the home recording a shot....Here is the gear I would recommend.
Use the computer you already have. People will tell you that you have to have a really powerful computer but I am working on an old windows xp computer that dosent even have a dual core processor or much RAM. It hasn't given me any problems...you can always get a kick ass computer later on if you need more.
Next I would get an interface that is capable of recording at least 4 tracks at the same time. That way you can track drums with 2 overheads, a snare/high hat mic, and a bass drum mic. (you could also plug your drum mics into a mixer board and run the stereo out into the recorder. That would put you drums on 2 tracks and you would have 2 tracks to record bass and a guitar while you're recording the drums) I have a Prosonus that I like. They have great preamps and come with a DAW (a DAW will cost you). They are between $200 and $300.
Next you will need some mics...A couple of
shure SM 57's, A shure SM 58, A Large diaphram Condenser mic or 2, and a set of drum mics. On condenser mics I love the Electa Voice RE410 and RE510. Thier sound is stellar on vocals, guitars, and drum overheads and you can get them used from guitar center for $100 a piece
Next you will need some studio monitors to mix your recordings with. decent ones are going to cost you out the ass. If you dont have good ones its very difficult to mix recordings that translate well on all audio devices. Your recording will sound great on one system and sound like dog shit on another. Get good monitors and be done with it.
Next you will need a room to record in and another to mix in. You will need to treat your mixing room with bass traps, sound diffusers, and auralux foam. If you dont treat your rooms you will get a boxy sound out of your recording room, and in your mixing room you won't get an accurate reading of your mix, no matter how much money you've sank into recording equipment.
Side note...
You can mix on consumer grade stereo speakers in your untreated bedroom. You will just have to take your mix and play it in 15 or 20 different type sound systems like the DVD player that is hooked up to your TV, your car stereo, your boom box, so on and so forth. After doing that for a year or 2 you will learn you speakers and your room and compensate for its shortcomings and what frequencies are hyped and which ones aren't.
Or you could go to a studio and be done with it