I thought i'd better make a post about this before people keep asking what recording equipment I have.
Firstly, there is my good old guitar. I use my Washburn X-50PROFE which is now a discontinued brand, I think I bought the second to last one new one on Ebay.
This guitar is connected up to my guitar pedal. I use a Boss GT-10, which can pretty much make any sound you want it to, though it takes a long time to discover how to work it and how to get the sound you are looking for. A similar model to this is the Line 6 Pod X3 Live, which works just as well. One of the main advantages of these pedals is the ability to connect to your computer and record raw sound via USB cable, making it sound much cleaner than using a microphone.
On your computer, you will need some kind of Digital Audio Workstation software to be able to record the sound coming from the pedal. There are free DAW's floating about the web, namely 'Audacity'. But I have found the best to be a program called 'REAPER'. It has so much more than Audacity and it only costs around £40. REAPER has a nice user interface and it becomes really easy to record music with it. Of course, no DAW is complete without a multitude of plugins to mix your tracks, and REAPER has a good amount for all the basics: reverb, delay, compression e.t.c.
For those of you without a drumkit handy, or those that have a drumkit, but no expensive recording equipment for it, then i would recommend buying a program called EZDrummer. This is a program where you can build a drum beat using prerecorded drums and add them to your music. It comes with a variety of different expansions depending on the music that you play and normally costs around £20.
For the vocals, I basically do exactly the same as my guitar by just plugging it into the pedal and messing around until I get a suitable setting.
Hope this has helped, I will be glad to answer any questions or queries :)