Okay Bee:
         To keep it really simple. Get yourself a $26 Karaoke microphone from Future Shop. Make sure that it has the 1/4" pin, not the three pronged XLR fitting on the end. Now buy yourself a 1/8" adapter so that you can plug it into your computer.
Download "Audacity" and Bingo, you're done. That's it.
All you have spent is $26, unless you already have a mic & stand at home. With this set up you will still be way ahead of anything you've had in the past & I'm sure you'll enjoy the results.
K,I,S.S.
Jim