Can anyone recommend the best entry level recording software out there? Regardless of price, it has to be relatively easy to use (does not require a PhD), is compatible with Vista/XP, and is not terribly expensive.

Also, I guess I would need some type of direct box or interface, probably USB or Firewire I'm guessing. What are the options out there that also feature good performance for the price.

Mixcraft 4 is very easy to use and costs only $70. Compatible with Vista and XP.
http://www.acoustica.com/mixcraft/

It comes with prerecorded loops and some virtual instruments. There are also several EQs, compressors and virtual amplifiers as well as delays and even a multitrack vocal simulation. You are able to import and process MIDI files such as those from Band-in-a-Box.

The company also has available Beatcraft, a drum machine package that is very easy to program if you have any clue about rhythm, featuring a variety of kits. You are able to burn CDs from Mixcraft and mix down to a WAV or MP3 file. I downloaded Mixcraft & Beatcraft about a year ago and was recording the same day. It's a lot easier to use than Cubase, which I also have. There are some latency issues, but it's pretty good with ASIO 4 All. As usual, the more memory & processor power you have, the better. If you have an idea of how you want a song to go, Mixcraft gives you the tools to put together a decent demo -- maybe not ProTools quality, but still good, especially for the money.

As for interfaces, M-Audio makes the Fast Track MK II USB Interface, which sells for around $120. It has one 1/4" input as well as a balanced XLR with phantom power for a microphone. This limits you to recording one instrument at a time. If you need to do two instruments at a time, the Fast Track Pro Mobile sells for $200. The Fast Track acts as a headphone amp (1/4" jack) as well and allows you to monitor while recording, with controls to balance the live input volume with playback while recording. It also has left & right line level ouputs.

Hey, thanks Laklander. I've used Cubase in the past and while it seemed to provide great sound quality, it was a little more complicated than I was looking for.

Thanks also for the info on the M-Audio interface. That was going to be my next question!

I use Acoustica Mixcraft4 extensively and I've found it one of the easiest to use programs around. Also Sony ACID.

I've used quite a few Audio Recording programs, By far the simplest (and Free) program I've ever used was a program Called Audacity. Audacity is truly a skin and bones program, just basic audio recording. I've used Sony Acid, and that was a little more complicated, but still relatively easy to get around. After ACID, I used Acoustica Mixcraft, and that was also a program that had a short learning curve. I use now both Logic Pro and Pro Tools LE 8, which are more complicated programs. Saying that, all programs have a learning curve. If you are willing to invest the time (and money) to learn a program, then all programs could be a good entry level program.

I second AudiEng's comments about audacity...it is extremely easy to use and you can't beat free. What I dislike about it, and I imagine you will, is that you are very limited regarding, track count, plug-ins, expansion capabilities, and editing power. It is not a program that can grow as you do.

I would very much recommend buying an Mbox, or the cheaper Maudio interface, with protools. There is a bit of a learning curve but if you know the basics about signal path, aux sends, inserts, ect...you will learn fast and fall in love with this software.

You can buy and Mbox 2 with ProTools 8 for around 450 I believe! And, contrary to popular belief, pro tools works great on PC. If there is anything I can do to convince you to do this - let me know! Haha!

There are newer versions of Cubase that I think get a lot simpler than the Cubase of the past. Still, I wouldn't recommend it over Mixcraft UNLESS you intended to buy an interface that actually came WITH Cubase or Cubase LE. Version 5 looks really good, and it seems to me that the learning curve has taken a big dive since 3 and 4. And the plugins are near studio quality, better than Mixcraft to be sure.

I will have to agree with Sonic Foundry's Acid, I have not used there recent releases, but a version of this software came with my old USB External CDRW drive in like 2001ish,(cost $300 and took an hour to burn a cd lol). But anyway, it was very easy for me to figure out and use, I used it for years before I got into Ableton Live, and then Logic Pro.