[cfs005]

Okay, I'm a complete idiot when it comes to recording but I want to start recording some in a small studio I'm building in my home (7' x 12'). I basically want to record some acoustic guitar and vocals. Would like to layer harmonies over the lead vocals, etc. so I can do my own harmonies and have the acoustic track in there too.
I have a fairly new laptop computer, and I've heard some people mention buying a new sound card and software to record it all onto the computer and mix the tracks. It has a CD burner as well.
So if I buy the soundcard and some software, then how do I plug in the mics?

I've also saw the 4 track and 8 track (Fostex, etx) digital recorders like on eBay that, from what I'm reading, will allow me to record several tracks and layer them.
But from what I read on here, the PC is the way to go for ease and budget.

I basically just need to know how the most affordable way to get a very basic set-up in my makeshift studio. Would like to spend under $500 for the whole deal and the mics alone are already going to be about $150 or more.

Somebody please tell me exactly what I need to buy in addition to my PC to be up and recording.

Any idea/input would be greatly appreciated. Thanks!