U can also find a preamp type interface that works like a soundcard
here. that way you can get a all three vital components for just a lil over 200 and still have a decent setup for the pc. Of course your equipment is only as good as your software. If your into making beats, maybe try fruityloops. If you not too skilled with software, try something simple like Acid Pro 4.0. Everyone recommends cool edit, but i never liked it much. However my needs are kinda differnt from most.