$200 portable recorder & audio interface (Mac / PC / Linux)
Consider making this your first audio recording purchase. You can record directly to an SD card without the need of a computer in a concert or practice room situation. It can also be plugged into a computer to act as an audio interface so you can record directly to your computer using software such as Audacity or Garageband. Two additional microphones can be plugged into the H4n.

$150 audio interface (Mac / PC / Linux)

cables with a lifetime warranty

$120-150 per condensor microphone (buy two)
These are made and ship from Sweden, so it may take about a month for them to arrive.

$249 multi-pattern large diaphragm condensor microphone

$99 dynamic microphone
This is an extremely versatile microphone that is great in live situations where feedback can be an issue as well as in the recording studio on anything from voice and drums to wind instruments and guitar cabinets. This is a microphone to purchase and keep your entire life.

$100 reference headphones

Open source digital audio editing and recording software

$5 DAW (Mac only)
audio recording and editing software

$60 DAW (Mac / PC / Linux)
audio recording and editing software

$99 (studio), $199 (Pro)
Easy to learn, easy to use DAW (PC only)
Pro version comes loaded with plug-ins and loops