Depnding on what it is you are recording then the setup may need to be varied. But for an easy to use and fairly cheap setup i would recommend as follows.
1. Buy a small Behringer Xenyx 502 mixer,this will at least give you the option of XLR and 1/4" inputs as well as enough outputs for your needs. If you need Phantom power get the larger units.
2. M-Audio Delta 44 audio interface to connect the mixer to the computer. It also has the flexibilty to have the output from the computer passed back into the mixing deck to allow you to record with headphones on or passed to externally powered monitors.
3. Magix Studio 12 Deluxe is a really easy and cheap program that can allow you to make some easy and simple songs, and arrangements.
Not the simplest way of doing it, but it gives you much more flexibility and you never know, may spark some creativeness inside of you having all these options in front of you.
Regards
Jason.