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I need advice! ibook G4 recording with Logic Express

I am currently recording, editing, mixing with Logic Express on my ibook G4. I have been doing this over the past year and I really love Logic Express.
My audio engine gets bogged down when I playback too many tracks at once. Is there a solution that won't compromise my playback ability? I am using 768 MB DDR SDRAM on a 1.33 GHz PowerPC G4. I also have a 7200 external harddrive, which I have not used yet for recording. Would this help the audio engine problem? I use the computer mic, which works surprisingly well. I know I need to invest in a condensor mic soon, but I want something affordable and reliable. I am looking into the FIREPOD. Any suggestions on another interface, mic, recording software, etc.

Thanks in advance.