M-Audio's Podcast Factory ($179.95 MSRP) is an inexpensive way to assemble a bare-bones podcast studio. You get a microphone, a stand, software, and a USB audio interface, not unlike the one I use to produce Gearlog radio. The mic plugs into the interface, which plugs into a USB port. The interface controls levels both in and out and will also drive headphones. The software includes a very nice freeware recording/editing program called Audacity as well as a more complex application, Ableton Live Lite 4, that I have never used. The interface should work with any recording software, however. Also included is software to help you load the completed podcast to a syndication service, which is necessary if you really want people to be able to download and listen to your masterwork. Drivers are provided for both Windows XP and Mac OS X 10.

I like the M-Audio gear (a MobilePre USB) that I've been using and think you'll like Podcast Factory if you're just getting started. There is much to be said for a one-box solution when you're new at something.