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Digital Home Recording?

I have a new computer w/ 160 gig hardrive

I have an old tascam 4-track with worn out cassette drive.

I have a digital effects processor

I have a drum machine

I have a digital keyboard

I have a guitars and basses

I have mike/cables/stands

What would be the best way to enter into the world of digital recording. What software? What hardware? I'm thinking along the lines of home recordings of songs with drum machine drum tracking.

I produced hundreds with the Tascam but the tape unit is worn out and replacement parts unavailable. I would put my budget at $500.

Thanks!

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