emptyspaces: first give my DIY Recording FAQ a good read. remember to standby a cactus or a plant beside you, too much time on the PC is not good for the eyes. myopia on the increase..
"the basic signal chain formula is :
Recording Purpose > vocals/instrument > mic > preamp > soundcard > USB/Firewire/PCI > PC > DAW"
before we talk about budget, you have to state your recording purpose.
if you wanna record live drums+guitar+bass+vocals with a mixer, yes $500-$600 is definitely possible. but just FOR A MIXER. don't forget you still need money to buy cables..micstands.. mics.. pimp up your pc. etc.
and the reason why I asked you to state recording purpose because you may have a wrong/wasted purchase in mind, in case what you wanted is to record a band live demo or layer recording demo, then someone (most ppl) just tell you "just get a mixer".
and yes mixers are very affordable now, if your wallet is abit on the slim side, you may wanna consider Behringer. if your wallet is fat and so is your desire for quality. go for mackie.