Here's the cheapest studio I would attempt to record with. To be sure, you can find cheaper mics and a cheaper audio interface, but they sacrifice on sound.
Here's a simply flow chart of how pieces connect in a basic mixerless home studio. This type of studio is the simplest and the cheapest, and it relies on the power of your computer for recording and playback.
Here's some products that will get you going at decent quality, but as cheap as possible. Note that you get software bundled in with the Inspire, a budget version of a well known sequencer.
PreSonus Inspire 1394 FireWire Audio Interface with Cubase ($159.95 Ebay Buy Now)
The INSPIRE 1394 is a revolutionary FireWire Recording System featuring professional quality 24-bit/96k analog to digital conversion rate, four simultaneous inputs, software control panel as well as audio recording 
and production software giving you the smallest, most flexible, most affordable and all-inspiring computer recording studio ever!
M-Audio KeyRig 49 49-Key USB MIDI Controller (US $99.00 Ebay Buy Now)
The M-Audio KeyRig 49 turns your Mac or PC into a versatile keyboard workstation. Featuring a 49-key, synth-action USB MIDI keyboard and the award-winning Key Rig software for the PC, KeyRig 49 makes it easy to start composing and performing music with a computer. Use KeyRig 49 to play Key Rig's virtual instrument sounds, or audition loops and compose songs with M-Audio's Session, Apple's GarageBand, Ableton's Live Lite (included) or other music-creation programs.
The KeyRig 49 keyboard also includes professional features like pitch and mod wheels, an assignable volume slider, octave +/- buttons and sustain pedal input. It's powered via a single USB cable and works instantly with computers running Mac OS X or Windows XP.
| AKG Perception 100 Studio Condenser Microphone ( $65.00 Ebay Buy Now) |
The Perception 100 is a large-diaphragm true condenser microphone offering solid build quality, good performance and excellent value.
It delivers a classic warm, transparent sound that conforms to the stringent standards defined for AKG recording products.Here's the cables and stand you need
OnStage 7700 Tripod Boom Microphone Stand ( $20.00)
The On-Stage Spotlight Microphone Stand is the ideal tripod boom stand for countless stage and studio applications. With its durable construction of hybrid sheet metal and high-impact plastic leg housing it holds up to repeated use and abuse. A cast
steel mid-point clutch also locks down the boom to secure your microphone. The boom arm can fold flat for easy storage and is removable for those times when a boom is not required.CBI LowZ Microphone Cable with Neutrik Connectors ($68)
The CBI MLN Performer Series mic cables are extremely flexible and durable cables. They are constructed with Beldens 22
-gauge, 2-conductor super low noise, ultra flexible audio cable, then fitted to Neutrik male and female XLR connectors.Hosa Nickel-Plated Dual Cable (Dual RCA to Dual RCA) ( $ 9.00)
Precision molding of all plastics and high-tolerance tooling ensure tight, positive connections for all Hosa RCA connections. Hosa's Limited Lifetime
Warranty expresses their confidence in these RCA cable assemblies!KRK RP5G2 Rokit Powered 2-Way Active Monitor ($299.00 Ebay Buy Now)
The KRK RP5G2 Rokit G2 Powered Studio
Monitor takes this KRK design to new heights.A clear less than $1000.00 dollars recording studio! (Assuming you already have a capable computer system if not add another 800-1500 to the tab)
