GarageSpin

Prior to Engadget's Mac Mini Home Recording Studio post, Gizmodo wrote another, more financially cumbersome "recording studio how-to" post. It's great if you have $5000 to spare and are looking to upgrade to a pro-quality recording studio.

All you have to do is order it, set it up, and go. We already made the hard choices. This starter studio features pro-quality sound for the audio engineer on a budget.

This is not for your average indie artist. While drool- and dream-worthy, none of the equipment is necessary to produce a solid-sounding EP or demo.

Their gear shopping list includes:
Microphone: Superlux CM-H8D Tube Condenser
Mixer: Mackie B248 Mixer
Interface: MOTU 24IO PCI Audio Interface
Monitor: Fostex PM05 Powered Monitors
Extras: Guitar and Amp Package
(list doesn't include software or PC!!)

I propose more affordable alternatives:
Microphone: SM57, MXL V67G, or Studio Projects B1
Mixer: Use your software's mixer -- no extra charge!
Interface: M-Audio Audiophile 2496
Monitor: M-Audio BX5 Powered Monitors
Extras: Not on this bootstrap budget..!

That would bring your budget down from $5000 to under $600. Cha-ching.