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Building a home studio Don't know what?

Hey- i am home recording illiterate. I am trying to build a small home studio for demoing tracks before I could to a full studio. I don't know whether or not I should go usb interface, what programs, mics, and midi's to use? Or should I use a digital workstation with burner. I want to be able to create lots of sounds as well as recording acoustic and electric, and paino. Not sure what to do. I have limited budget as well. Please Help

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Pro Audio Guest Thu, 03/01/2007 - 22:05
for my own little recording set up I use

software... Guitar Rig 2- guitars and basses and some vocal processing
Ezdrummer - drums (midi)
Ableton Live 6

Hardware.........duo core intel pc
M-Audio Oxygen 8 midi controller
Fast track usb interface
MXL-990 Condenser Mic
Shure Dynamic mic

this is pretty bare bones but I get by with some pretty great sounding recordings
x