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I use Cubase. it came with a digital interface I bought to start my recording experience. next was a mic. I read that a Shure SM57 is in every studio. it is a good dynamic mic for amps. some like it for vocals. not me.
I use a wide diaphram condenser for vocals and miking my resonator (works great).
sometimes I mic the amp, but lately I have been plugging into an amp modeler. those work really well .
my system is basic and not expensive. I will upgrade to better gear eventually.
I began with a powerful computer and a good soundcard. the PC I ordered had a soundblaster card put in it. I am happy with that.
next. I got the Lexicon Lambda digital interface. it makes everything easier IMO.
like I said, it came with the basic Cubase recording program. I have since upgraded to Cubase Essential 4, mainly because I bought ezdrummer and wanted to ultilize Drag and Drop to create drum tracks.
I also picked up a 25 key midi keyboard controller. having that to work some of the VST instruments or plugins is great fun.
I use inexpensive monitors and some headphones someone laid on me.
those two things need to be upgraded.
my advice is to start simple. learn the program and then you will understand what and how to upgrade.
tweakheadz.com helped me a lot.