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I'm a Garage band user myself. It's a great program.
I bought an M-Audio Podcast factory new on Ebay for 49 bucks. It came with a good mic, though you can plug in anything you want in the XLR input. There's also a line-in jack for guitar or bass or whatever.
Some of the amp simulations and effects on garage band are fun to play through. I often plug my guitar in and crank up at night on headphones when I don't want to wake the neighbors.
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