Ive seen a few posts about preamps where the attitude is most above the level of budget consoles will do the job, the reason you have more is for special things like needing a LOT of clean gain, or really just to mix things up a bit. Like throwing a few circles into a box of squares.

Someone should have an opinion on the M-Audio 2626 pre's though.

You thought this out fairly well. Although, I do love the SM 7, you would do just fine and save yourself some money with SM58's. You could get three of those for the cost of a SM 7. So really, your stuff will sound good because you're smart. The best thing about an SM58 is, if you're putting them on the drums, you can unscrew the metal ball. Then you have an SM57! You're just not going to glean much of a difference between 7 & the 58. Besides, sticking the 7 on a snare drum will be a bit more awkward than using a 57. It's large, it's heavy. Preamp quality? All of these lower-cost computer interface units are using more than acceptable quality front ends. It only makes a difference when you take a real step up switches out of your price range. Besides, it really won't impress anybody. If you know how to make good recordings, they'll be good recordings. If you want some more interesting texture and color, get yourself one of the many available ribbon microphones from companies like Cascades, CAD and others, all made in China. They all sound like ribbons which don't sound like dynamics or condenser's. And at around $160 For a FAT HEAD, it's a smart purchase. As a result, you'll end up with a fat head for being so smart. Just don't blow into them & don't let anybody else do that either. And if somebody does that to your microphone, you'll have to tell them they'll have to do the same to you or buy you a new microphone.

I don't blow microphones or anything else, except pot.
Ms. Remy Ann David

The FatHead is a great mic for the money. I frequently use it on electric guitars coupled with a 57 or an i5 and am always please with the results.

I think it's a well thought out list as well. A couple of points -

Any special reason you went with the M-Audio interface? I don't really know that much about it, but I wouldn't pinch pennies here. If you save some money elsewhere - say getting a 58 instead of the SM7 as Remy suggests - you have a wider range of interfaces to choose from. I'm putting in another vote for living with the pres in your interface until you can afford to spend $6-700 per channel and up. The mid-price pres don't make enough difference and they give you the false hope that you can improve your sound by improving equipment rather than improving technique.

Another warning - I wouldn't use the turn a 58 into a 57 trick on the snare drum, the naked capsule is tough, but I wouldn't expose it to a drummer. Fine to use it inside a kick.

I going to chime in here also. because I'm in a similar boat. I just spent quite a bit of my hard earned money setting up a home studio. The only thing I would do different if I could is buy better monitors. I have 5 inch M-audio BX5a's and I am having a hell of a time with low frequency response translating to other systems. I'm not familiar with the MR5's but them only being 5 inch and in the same price point as my monitors I would defiantly go to a store and compare them to something better before getting them. My mix sounds great on my monitors and awful everywhere else.

You can buy the best sounding gear and if you cant hear it what will it matter. Just food for thought. I recently read a thread about monitors from here that said you should spend 40% of your budget on monitors. I don't know if I would go that far but I would defiantly spend a great deal more than I did.

mabye go with a firepod instead and save up for the Mackie MR8. i have them. I do alot of messing around with rap instrumentals on them. and wow they absolutley blew me away. The cabinet these things come in is awesome! MR8 would be they way to go. fire pod is only 350 here =)

http://cgi.ebay.com/PRESONUS-Firepod-FP10-THE-OLD-SCHOOL-FP10-IN-STOCK-B_W0QQitemZ290251953404QQihZ019QQcategoryZ41466QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

Looking into Mackie MR series monitors I found this on the Mackie website.
"Applications
MR Series Monitors are ideal for a variety of applications. Use the MRs to empower your mixes in the studio, or to add pro sound to your multimedia, gaming or home theatre system. You can even use them for a great-sounding home DJ rig. The MR5 and MR8 Monitors share the same design, so they function great together, too, making them optimal for multiple monitor setups—just add a Big Knob —as well as surround systems. For any applications where high quality sound and classic good looks are required, MR monitors are the perfect fit."

Would I be correct in saying the MR8 is a louder MR5?

Would I also be correct in thinking the "Big Knob" they're talking about isn't hardware?

They could be talking about their PR guy.
However, it is, I believe, an output switcher with a volume control.

I would expect they are just louder MR5's, probably with an 8" woofer.

thanks alot for the help guys.

as much as i appreciate it, im gonna stick to my stubborn self and go ahead with the sm7b... i play everything, but im primarily a vocalist, which even tho it probably wont make much of a difference... im the biggest vocal critic out there... (im not even all that impressed with bono... seriously)

however, i am happy someone said something about the monitors... i really didnt spend enough time researching monitors.

keep the tips comin!