+1 Fingerpicker
Rac you will most probably are going to have to buy a condenser mic with any of the options. Still gives the best sound, but might not be needed if you are going to use it for song idea/ writing purposes.
There are some very good "free" applications out there. Audacity and Reaper work very well if you are going the laptop route.
Line 6 have brought out an even smaller studio pod
http://line6.com/podstudiogx/ , but you will need a computer for this.
Maybe the time has come to build a home studio ?