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advice for small studio for fun and maybe profit? - edited

Note: I have done some searching on this site and found a lot of good information, so I've edited this post to get to more specific questions. I want to be able to do rather minimalist analog recording for singer/songwriter types, jazz combos, and maybe even classical quartets and such. Here is what I have:

Some general advice

hi,

I want to home-record some rock tracks.

The sound should get a touch of british indie stuff.

My software: Ableton Live 4 and Tracktion
Plugs: Vintage Warmer and T-racks
Hardware: iMac G3, 350 Mhz
Headphones: AKG K 141

Now I want to buy monitors: Syrincs M3-220 on ebay.

A friend has got Bias Peak, so I can master with Peak.