Heya,
What system you choose to use is entirely dependent on what kinds of things you'll be recording:
1. many instruments, vocals, drums (ie traditional band). I would recommend looking into one of Pro Tools systems with multiple line-ins that have Digital IO (interfaces).
2. one instrument/keyboard or voice. If you have a laptop, you'll need an external Digital IO. M-Audio offers a few value options. And you'll need a mic for the vocals, if you are doing predominantly vocals, I would highly recommending finding a descent Large diaphragm condensor mic.
3. DAW = digital audio workstation. What kind of music? if it's electronica, get Ableton Live, Steinberg Cubase or Logic. If it's live music try Logic, Pro Tools, or Steinberg Cubase.
Since it's Cyber Monday, Musician's Friend has gads of deals, you can see all their offers in Digital Audio online at pungle.org. Plus, if you use pungle, a portion of what you buy will help the charity you pick (100% Free to the user). Give a little, and get yourself hooked up!
-Madeline
Music Technologist / Singer, Electronica Producer & Designer