Hi again. No need to quote me if I got the post above yours (friendly advice)
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Well that seems like a good computer to track with.
Here is what I would have bought.
* 512 MB additional ram for a total of 1 Gigabyte with ram.
* a dedicated external firewire soundcard. Assuming here that you only will track one acoustic source at a time (not multitracking) you can go with whatever interface. There are multitudes and its very hard to tell you wich one is "the best".
* an additional harddrive, called a audiodisk. This is where you record all audio materiell to. You can also place drumloops and other samples on this disk. Make sure you make 2 different partitions to keep the separated.
* Since you play "some" piano, buy a rather cheap 61-key midi controller/keyboard. Anything goes here. Even better might be to buy a used synthesizer that can do the same job, and also delivers soundbanks that can be used.
* You will need sequencer software to track and program midi and to manage and play loops etc.. Again there is a multitude out there. I also thing the Software Reason is capable of recording audio, but I aint sure about this, and I dont know If it is a good choice. Other sequencers are Abelton Live, Cubase etc etc..
* A microphone. Microphones costs from 10 dollars to 50.000 dollars and again its totally impossible to tell you wich one to buy. But a dynamic microphone in the 60-200 Dollars pricerange maybe? The pros with a dynamic mic is that you can use it on a stage/live if you ever make it that far. The cons is that they dont record audio with the depth and quality of a condensermicrophone. Then again - condencers are more expensive normally. But you can get an ok one used from around 90 USD, at least here in Norway. Maybe even cheaper at your place.
* a microphone holder.
Thats what I can think of now. Hopefully some guys here can assist in telling you about things like if Reason can track audio ok, what sequencer/recording software to buy etc..
All this should rather easily be covered by the amount of money you have said you can use.
If you are a newcomer to music/tracking - spend as little as possible. Buy used equipment. If you have the patience to work with music, your needs is gonna grow big on you, and the need to update to better gear will hit you when the time is right.
Good luck, and dont quote all this ok?
Feel free to ask.