Hi,
I know some threads have dealt with this topic before but I wanted a little more insight and I was hoping you guys could help me out. Before I ask for advice about equipment I guess it is would be good to tell that my music is mostly one acoustic guitar and vocals. I might also add some leads with a Fender Strat.

I am very new to this. I don't exactly know what all is required but I was thinking of buying the following

1 Preamp to interface with the computer (I was thinking M-Audio audio buddy)
1 Condenser mic for the vocals (I was thinking MXL 990)
1 Matched pair mic for the acoustic guitar (No clue)
1 Midi Keyboard controller to add effects (No clue)
Chords
Either headphones or studio monitors

I was also looking to buy an amp and an effects peddle for the Fender Strat.
I am planning to use Garage Band to record.

Question: Am I trying to buy too much stuff in too much money?
Question: Do I need to buy anything else in hardware for a basic recording setup
Question: Can I use a standard amp as a studio amp or vice versa?
Question: Does Garage band work with a midi controller?
Question: What preamp/mic etc. do you think I should go for?

Any other advice you might have for me. Most of music is soft light folk kind of stuff. Thank You.

I don't use a PC, I've got a Yamaha AW16G digital workstation, use a line6 Pod for the guitar and an ART gold preamp for mics drum machine and sometimes keyboards, them use Adobe audition to clean up and special effect etc.
Got an AKG 1000s condenser, a Shure SM57 dynamic mics, superb for all. I use them stereoed for the acoustic guitar, the combination gives a great sound, the condenser can also work with a battery, so you can use it with old analogue gear etc. I initially got it because at the time I was recording with a Yamaha multi-track tape machine, hence no phantom power, I got great recordings from it too.

I got it secondhand on Ebay for £350.00 a couple of years ago, it retailed at the time for £750.00, there is a newer version [think it's called an AW1600],  which has better preamps, but very hard to pick up secondhand.
You could probably pick up the G a lot less now.

Whole lot about £800.00 GBP

I'm sure you can get a good set-up on your PC for $1000, yeah, research to see whats out there, check on the reviews etc.

thank You... u r the best

You are welcome, have you had much info on a PC set-up?, I would compare everything before you buy.
BTW make sure you get a good preamp, that is probably the most important bit of hardware you will need to buy, when using mic's.  There's a lot on the market, I was lucky I purchased an ART Gold preamp half price, I paid about £220.00 at the time.[it's budget range, It had good reviews, I'm happy with it for now]
  I'm no expert in which ones to buy, so make sure you do plenty of research.  At the time when I purchased mine, a studio producer I know recommended either focusrite, which are good solid state mic preamps, or TL audio which are good tube/solid state preamps. This was based on the my budget, I was willing to pay up to £500.00 at the time.  There were quite a few on ebay at the time, I lost a few auctions on TL gear, I became impatient, I wish I got a TL audio, they have excellent reviews, probably the best budget Preamp at the time.

What computer do you want to use ? Mac or PC ?  There are very good interfaces out there that have good preamps in them, and now not all that much money.  Look around check reviews , go to the stores and ask for demo's of the ones that interest you.

 imho if you gonna try to get the best mix possible.. you are gonna need both. headphones and studio monitors. This can be the most crucial part of all of it right here.. If your ears perceive your mixes a certain way ,, then taken out of that set up and played on other audio gear (car stereos and such) you will very quickly find the problems in you monitor/mixing set up.  

 look around for good deals on mics,  sometimes sales are offered on great mics that put them in an affordable price range for consumers.

amps .. it's done both ways , your amp, direct recordings ( guitar rig/line 6 tone ports) or , now days a combination of the two.

recording software, get a good one and stick with it .. learn it learn it learn it.. It takes time to learn the bells and whistles  of all the editing and tools that's out there.. You really only need one good one at first and just study it till you know all the ins and outs of it.

sometimes music stores like guitar center . offer great package deals on the whole start up ... preamp interface, software, mic, and controllers. 

 If you get a very good large format condenser mic , you won't need the stereo pair of mics for your acoustic guitar. It'll do the job fine.