Well to answer your first question I would go with a zoom rythem track 123 (I think it's a 123). But zoom rythem track's are fairly cheap, but provided decent caqpabilites. I like it, and use it on every track I produce.

Now about the mic, if your going to record vocal only, then go and cop a condensor mic, you might want to pick up a cheap one at first. Something like a sampson at Sam Ash. Then with all the money you save on the mic, you could reinvest it into a solid preamp. I would go with presonus tube pre. Single channel would be fine for your vocals only. First thing you do is purchase a groove tube (&15- $25) and dump the existing tube in your presonus pre, then add the groove tube. This will add the warmth and colorization to your sound, it makes a huge difference. With this set up you should be able to produce good quality audio on a budget. Mic and pre shouldn't run you more than $200 this route. Conisdering you can spend up to a thousand dollars on a condensor mic.