Home Recordings

Alright, I have read many articles of recording, but I suppose they are not all fresh in my mind right now. I have got my computer set up with recording software that I wish to use. However the microphone I have right now is really quite terrible. My guitar sounds dead, it isn't warm sounding like when I am playing. I would imagine that the accoustics of my room are bad, but I am pretty sure that my mic isn't in good condition. So I am looking for sugestions on recording equimpent, what mics are good, and if there is a need for a pre-amp or equalizer to help with the recording. Oh and what prices I am looking at for the equimpent.