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Hip Hop vocals on the cheap

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So I'm brand new to recording and I don't have much recording stuff yet. Since I'm the kind of person who likes to know what they're going to do in advance I've spent several hours yesterday researching my options. That plus I'd like to make the switch to free software for reasons of price and ideology. And I'm getting a new (or used) computer with recording in mind.

Need live multitrack on the cheap.

I already have an original 01V with 8 channel ADAT out.

We need to record some live tracks from our shows... I was shown the MOTU 8Pre at a local music store and I'm considering buying it.

From what I understand, I can use the 8 channels of ADAT and add a few more channels via the analog pre's, and grab the tracks via firewire in Audacity or some other program.

Trying to make a very cheap, rather small isolation booth.

I honestly have one of the worst acoustic environments you could have in my room...10 guitars hanging on a single wall. There's a futon, curtains and such, but nothing that really reduces flutter and echo. Terribly for trying to record trumpet, loud guitar, really, anything.

on the fly quality to computer for cheap

What I am looking for is a method to get decent quality input on voip chats such at ventrillo etc, and have some cheap reverb/chorus effects. The hardware I can make use of for this is a Shure 57, Xfi Xtreme music pci card. Everything else I would like to be able to purchase from a guitar center.