The latency problem isn't such an issue these days. I use a Tascam US-122 audio interface which has vocal and instrument inputs, and a Shure SM87 mike. The US-122 has probably been superseded now, but it cost £175 when I bought it, and the mike £85. I use a program called "Cakewalk Home Studio" to record which cost just over £100. You'll also need a wave editor to do a proper job . I bought one from a company in the US called Blaze Audio(www.blazeaudio.com) which worked out at around £13.50.