Ok, So my interest has been awakened by GFSA (although I'm sure my bank account will suffer )
Welcome to the club! I'm no expert and pretty much in the same boat as you, I'm setting up my little home studio as time and money allows - we've been discussing this for some time on the forum and there are some excellent advice from very knowledgable guys here. The route I'm going is the following:
PC - saving up to build/buy a decent PC dedicated to music recording only, which is essential: see Alan's post about the PC he built on this forum, as well as how Windows is stripped down to make it more efficient for recording.
Edirol FA-66 Firewire interface - of good enough quality and enough inputs/outputs for my present needs.
Edirol PCR 800 MIDI controller keyboard, which comes with Cakewalk LE - still have to set this up and figure it out and no, I can't play it...but I reckon it can't be too hard to learn a few basic chords and things. After all, I had a few piano lessons as a kid and could play Jingle Bells and the C-major scale! Will mainly be used to lay down some bass tracks, a bit of synth and whatever else I could squeeze out of it.
Guitar Rig 3 - from what I learned here that's the way to go.
Will get one or two mikes sometime also.
I'm fortunate enough to have been able to do some home renovations recently, and converted my old garage into a "guitar room"/studio/study for myself, and spend much of the last few months completing the room. I recently moved the guitars in there and the next step will be to do some DIY acoustic treatment, as well as set up the PC and all the other stuff. Alan gave some good advice regarding this.
But time...money...and lately the energy to do things when I have time... ☹