I second Bar Chord Nick on Reaper as recording/mixing/editing software. I would also consider a music production specific soundcard as opposed to a generic Creative Labs model. I got a great deal a while back on a Tascam US428 on E-Bay - it acts as a soundcard, mixer and control interface with your editing software - very handy as you can use the knobs, dials and faders as opposed to relying on the mouse (it's connected via USB).
As far as soundcards go, I can recommend anything by M-Audio or Tascam, I've also heard good things about Presonous but have no direct experience. Whatever you do, try as best you can to get a soundcard that offers zero latency (dsp cards are particularly powerful) - you also want at the very least one XLR in, at least one 1/4 inch in and one out, a spdif connection and a midi in and midi out. Hope that helps.