Hey jfj007...
I agree with ddw4e about the computer stuff. For basic recording (and with 2-3 grand) I recommend:
A decent vocal mic-
1) Samson C01U. This quality mic has a direct USB connection so you can record vocals directly to your computer without needing a mixer. $80
2) Shure KSM27. This is a high-definition kind of mic for very accurate voice replication. You do need a mic cable and a mixer, though. $300
Whatever mic you get, make sure you get a windscreen to shield the mic from breaths of air during recording and for the Shure mic, a mic cable to connect it to your mixer. Also, if you plan to record Keyboard, bass, mpc, etc. you will eventually need a mixer.
A decent sound mixer-
1) Alesis MultiMix 8USB. A quality mixer with a stereo output via usb- no additional sound card necessary. $150
2) Mackie DFX6. A high quality analog mixer. I recommend a sound card for this mixer's output to a computer. $200
For the Mackie mixer, instead of using your factory audio card, purchase an M-Audio Audiophile 2496. This sound card has stereo RCA inputs and outputs and MIDI I/O as well. You could connect your mixer's tape ins and outs to this card and then the mixer's outputs to your monitors. $100
Some decent speakers & headphones.-
1) Event TR6. Great sounding speakers. Powerful bass, clear all-around sound. I use these myself. $400 (for a pair)
2) M-Audio BX5a. Also good speakers, just a bit less powerful, and therefore less expensive. $300 (for a pair)
Don't forget cables to connect these speakers to your computer or mixer, however you decide. Also, I recommend Audio-Technica ATH-M40fs headphones for recording. $80
I like ddw4e's software. I use Sonar Home Studio 4, which can be found from $70-$90 various places online. If you want to be able to say you use ProTools, if you get that M-Audio sound card, you can run Pro Tools M-Powered on your computer for $250. I recommend Sonar 5 or 6 (the studio version) $200-$400. For mastering- SoundForge.
I hope this helps a little.