For each scenario I will recommend the same microphones. I have had extremely good luck with the Behringer B5 and B2 models. The B5 is a small condensor microphone perfect for micing instruments. It sells for under $100. The B2 is a large condensor microphone which works great for vocals. It sells for around $150.

Scenario 1: No computer

I would recommend an all-in-recorder such as the Yamaha AW16G. You can buy them used on eBay for around $300. It can recording 8 tracks at a time and play back 16. You can record, mix, add effects, and burn a CD.

AW16G = $300 used
B5 mic = $85
Total = $385

Scenario 2: You own a PC

First you’ll need some way to get the audio into your computer. This device is called an interface. I have had good luck with the Focusrite Saffire LE. It sells for around $220 on eBay. It can record up to six tracks at a time. Only two of those tracks have preamps though.

Next you’ll need recording software. Sonar is a great program. The home studio version costs about $100.

Focusrite = $220 used
Sonar = $100
B5 Mic = $85
Total = $405

Scenario 3: You own a Mac

For your audio interface, I still recommend the Focusite Saffire LE.

Newer Macs come with a program called Garageband. It is awesome and it is FREE.

Focusrite = $220 used
Garageband – Free
B5 Mic = $85
Total = $305

Lastly, there will be some hidden fees like mic cables, adaptors, extra mics, mic stands… These things can add up. But if you buy them one at a time, before you know it, you’ll have a rockin’ setup.

Good luck!

Ron
References :
http://www.homerecordinghub.com